Accounting

Accounting.xlsx

Sheet1

	Balance Sheet			Company A started at the beginning of 2019.
	2019	2020	2021	They entered into a lease with Jan 1st as both inception and commenment date
Asset				The Lease term is as below
Current Asset				- 5 yr non-cancellable
Cash	?	?	?	- 5% interest rate
Accounts Receivable	120000	100000	150000	- equal payment of $22916.51 at the end of each year
Prepaid Expenses	8000	5000	2000	- $1,000 bargining purchase option at the end of lease term
Future Tax Asset	?	?	?	Useful life of this asset is 6 years with 0 residual value
Long-term Asset				Tax rate 25%, 30% and 35% each of the year
?
				Earnings before interest, amortization and taxes for each year
Total Assets				2019	$123,456
				2020	$234,567
Liabilities				2021	$345,678
Current Liabilities
Accounts Payable	100000	80000	90000	Requests
Unearned Revenue	10000	8000	12000	a) Prepare amortization table for the lease
Future Tax Liabilities	?	?	?	b) Record all related Jes
				c) Complete the balance sheet
Long-term Liabilities				d) If instead of lease, company A pays $6,000/year rental to use the same equipment
?				what impace would this make?
Total Liability
Shareholders' Equity
Retained Earnings	?	?	?
Common Equity	200000	200000	200000
Total Shareholders' Equity
Total Liability and Equity