Business, 22.02.2021 19:40 Thickmadam57821

On January 1, 2017, Dwyer Company leases space for a donut shop. The lease is for five years with payments to be made at the beginning of each year. The lease calls for Dwyer to pay $10,000 on January 1, 2017, $11,000 on January 1, 2018, $12,500 on January 1, 2019, $14,000 on January 1, 2020, and $16,000 on January 1, 2021. Dwyer has adopted early ASC 842 and has appropriately classified the lease as an operating lease. Dwyer has a calendar reporting year and an incremental borrowing rate of 8%. Dwyer uses straight-line depreciation for its long-lived assets. Ignore current and noncurrrent classification for this exercise. Use tables (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.) Required:
What journal entries should Dwyer make at January 1, 2017, to record the effects of the lease?
Prepare Dwyer’s amortization table for the leased shop.
What journal entries would Dwyer make on December 31, 2017, to record the effects of the lease?
What is the balance of the right-of-use asset and the lease obligation on January 1, 2019, after Dwyer makes the rent payment?
What would be the balance of the right-of-use asset and the lease obligation on January 1, 2019, after Dwyer makes the rent payment under IFRS 16?

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On January 1, 2017, Dwyer Company leases space for a donut shop. The lease is for five years with pa...

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