question archive Leech Company entered into a lease agreement with Lessor Company with the following terms on January 1, 2020
Leech Company entered into a lease agreement with Lessor Company with the following terms on January 1, 2020
Subject:AccountingPrice: Bought3
Leech Company entered into a lease agreement with Lessor Company with the following terms on January 1, 2020.
Space 2 Floors at 1,500 square meters each
Annual rental payable at the end of each year 400,000
Implicit interest rate in the lease 10%
Lease term 8 years
On January 1, 2023, Leese Company and Lessor Company agreed to amend the original terms of the lease with following
arrangement:
Space 1 Floor at 1,500 square meter
Annual rental payable at the end of each year 250,000
Implicit interest rate in the lease 11%
REQUIRED: Prepare table of amortization and journal entries for the entire lease term.
