Each of the four independent situations below describes a finance lease in which annual lease
payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit
rate of return. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1,
PVA of $1, FVAD of $1 and PVAD of $1 ) Required: a. & b. Determine the amount of the annual
lease payments as calculated by the lessor and the amount the lessee would record as a right-of-
use asset and a lease liability, for each of the above situations. Note: Round your answers to the
nearest whole dollar amount..
Influencing policy (training slides from Fast Track Impact)
Finance Lease Calculations & Journal Entries
1. Each of the four independent situations below describes a finance lease in which annual lease
payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit
rate of return. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1,
PVA of $1, FVAD of $1 and PVAD of $1 ) Required: a. & b. Determine the amount of the annual
lease payments as calculated by the lessor and the amount the lessee would record as a right-of-
use asset and a lease liability, for each of the above situations. Note: Round your answers to the
nearest whole dollar amount.
