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Refer to the following lease amortization schedule. The 10 payments are made annually starting wi…

by Essaynice Tutors | Sep 9, 2023 | accounting

Refer to the following lease amortization schedule. The 10
payments are made annually starting with the inception of the
lease. Title does not transfer to the lessee and there is no
bargain purchase option or guaranteed residual value. The asset has
an expected economic life of 12 years. The lease is
noncancelable.

Payment	Cash Payment	Effective Interest	Decrease in balance	Balance
				69,952
1	10,000		10,000	59,952
2	10,000	5,396	4,604	55,348
3	10,000	4,981	5,019	50,330
4	10,000	4,530	5,470	44,859
5	10,000	4,037	5,963	38,897
6	10,000	3,501	6,499	32,397
7	10,000	2,916	7,084	25,313
8	10,000	2,278	7,722	17,591
9	10,000	?	?	?
10	10,000	?	?	?