Write a memo | Accounting homework help

Write a memo to the “Toys R U Audit File.”  Be sure to include the following:

1.    Brief description of current reporting rules for leases

2.    Description of proposed reporting rules for leases

3.    Example of application of proposed rules for a lessee

a.    Assume the following lease terms:

                                              i.     Identifiable Asset:  Facility (building) lease

                                             ii.     Term 10 years – assume no renewal option

                                           iii.     Monthly lease payments beginning at $125,000 per month over the ten year lease term

                                           iv.     The risk free rate is 2%, Toys R U borrows at an incremental rate of 6%, and the lessor rate is unavailable

                                             v.     Assume the lease commences on January 1, 2021 and the first payment is due February 1, 2021

4.    Include the following journal entries:

a.    Recording of lease related asset and liability at lease inception – use “Capitalized Lease Asset” and “Capitalized Lease Liability” as account titles

b.    Recording of the monthly expense for the first two months – do each month separately

5.    Attach an Excel worksheet to your memo with the following:

                                              i.     Calculation of the amount of the capitalized lease asset and related lease liability

                                             ii.     An amortization schedule for the lease term

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer