Accounting for standards and governance

nufnanxuhaq
timer Asked: May 9th, 2018

Question Description

its a question for my unit Accounting standards and governance I want a solution for it with the standards of AASB as per Australian standards. the book name is Financial Accounting by Craig Deegan 8th Edition.

Unformatted Attachment Preview

23. On 1 July 2019, Iselin Ltd signs a non-cancellable agreement to lease a building from Weber Ltd. The lease agreement requires seven annual payments of $375 000, with the first payment being made on 30 June 2020. Within each of these payment, $25 000 represents a payment to Weber Ltd for rates and maintenance of the property. The building is expected to have a life of only nine years, after which time it will have no salvage value. At 1 July 2019 the land and building have a fair value of $588 160 and $1 372 370 respectively. The land and building are expected to have a value (unguaranteed by the lessee) of $500 000 at the end of year 7, with the land component expected to be worth $150 000 and the building component expected to be worth $350 000. The rate of interest implicit in the lease is 10 per cent. Page 423 REQUIRED (a) Prove that the rate of interest implicit in the lease is 10 per cent. LO 11.8 (b) Provide the journal entries for the years ending 30 June 2020 and 30 June 2021 for Iselin Ltd. LO 11.2 11.7 Provide the journal entries for the years ending 30 June 2020 and 30 June 2021 for Weber Ltd. LO 11.2 11.3 11.5 11.11 , 11.3 , 11.4 , 11.5 , 11.6 (c) 1 , 11.4 , 11.12
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

This question has not been answered.

Create a free account to get help with this and any other question!

Similar Content

Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors