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Quaid Ltd Entered into a Lease Agreement on 1 July

Question 40

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Quaid Ltd entered into a lease agreement on 1 July 2002 to lease equipment on the following terms:
Quaid Ltd entered into a lease agreement on 1 July 2002 to lease equipment on the following terms: The interest rate implicit in the lease is 8 per cent and the fair value of the leased asset is $24,987. The lease is cancellable if the lessee immediately enters into a further lease for the same or equivalent asset. The economic benefits provided by the lease asset are expected to be consumed evenly over its life. The lease payment has not been made on 30 June before the adjusting entries are made for the year end. What are the appropriate entries in the books of the lessee at the end of the reporting period 30 June 2003? A) B) C) D) E) None of the given answers.
The interest rate implicit in the lease is 8 per cent and the fair value of the leased asset is $24,987. The lease is cancellable if the lessee immediately enters into a further lease for the same or equivalent asset. The economic benefits provided by the lease asset are expected to be consumed evenly over its life. The lease payment has not been made on 30 June before the adjusting entries are made for the year end. What are the appropriate entries in the books of the lessee at the end of the reporting period 30 June 2003?


A) Quaid Ltd entered into a lease agreement on 1 July 2002 to lease equipment on the following terms: The interest rate implicit in the lease is 8 per cent and the fair value of the leased asset is $24,987. The lease is cancellable if the lessee immediately enters into a further lease for the same or equivalent asset. The economic benefits provided by the lease asset are expected to be consumed evenly over its life. The lease payment has not been made on 30 June before the adjusting entries are made for the year end. What are the appropriate entries in the books of the lessee at the end of the reporting period 30 June 2003? A) B) C) D) E) None of the given answers.
B) Quaid Ltd entered into a lease agreement on 1 July 2002 to lease equipment on the following terms: The interest rate implicit in the lease is 8 per cent and the fair value of the leased asset is $24,987. The lease is cancellable if the lessee immediately enters into a further lease for the same or equivalent asset. The economic benefits provided by the lease asset are expected to be consumed evenly over its life. The lease payment has not been made on 30 June before the adjusting entries are made for the year end. What are the appropriate entries in the books of the lessee at the end of the reporting period 30 June 2003? A) B) C) D) E) None of the given answers.
C) Quaid Ltd entered into a lease agreement on 1 July 2002 to lease equipment on the following terms: The interest rate implicit in the lease is 8 per cent and the fair value of the leased asset is $24,987. The lease is cancellable if the lessee immediately enters into a further lease for the same or equivalent asset. The economic benefits provided by the lease asset are expected to be consumed evenly over its life. The lease payment has not been made on 30 June before the adjusting entries are made for the year end. What are the appropriate entries in the books of the lessee at the end of the reporting period 30 June 2003? A) B) C) D) E) None of the given answers.
D) Quaid Ltd entered into a lease agreement on 1 July 2002 to lease equipment on the following terms: The interest rate implicit in the lease is 8 per cent and the fair value of the leased asset is $24,987. The lease is cancellable if the lessee immediately enters into a further lease for the same or equivalent asset. The economic benefits provided by the lease asset are expected to be consumed evenly over its life. The lease payment has not been made on 30 June before the adjusting entries are made for the year end. What are the appropriate entries in the books of the lessee at the end of the reporting period 30 June 2003? A) B) C) D) E) None of the given answers.
E) None of the given answers.

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