L25
ExpiredLoffler Cos Canon 5535
Flagged for review: Useful life not provided — required for uniform ASC 842-10-25-2(c) classification (deviation D4).
Lease terms
- Entity
- Beckenhauer Construction Leasing, LLC (BL)
- Lessor
- Loffler
- Asset class
- Computer / IT
- Asset category
- Computer
- Asset ID / serial
- #25
- Commencement
- Dec 31, 2019
- Lease end
- Nov 30, 2024
- Rent commencement
- Jan 31, 2020
- Payment timing
- Arrears · monthly
- Lease term
- 60 base periods
Measurement inputs
- Discount rate
- 1.69% annual (0.141% monthly)
- Rate basis
- Imported from ROU-01 workbook (template cell J24).
- Useful life
- Not provided
- Fair value
- Not provided
- Initial direct costs
- $0.00
- Prepayment
- $0.00
- Lease incentive
- $0.00
- Undiscounted payments
- $10,120.80
Classification — ASC 842-10-25-2
Recorded classification: (manual override — Classification imported from the ROU-01 workbook.)
The engine evaluation (indeterminate) differs from the recorded classification (operating).
✗
(a) Ownership transfers by end of term
Criterion not met (judgement).
✗
(b) Purchase option reasonably certain
Criterion not met (judgement).
?
(c) Lease term is a major part of useful life
Useful life of the underlying asset is required but not provided.
?
(d) PV of payments is substantially all of fair value
Fair value of the underlying asset is required but not provided.
✗
(e) Specialized asset with no alternative use
Criterion not met (judgement).
Lease status
Initial measurement — ASC 842-20-30
- PV of lease payments
- $9,698.45
- + Initial direct costs
- $0.00
- + Prepayment
- $0.00
- + Lease incentive
- $0.00
- = ROU asset
- $9,698.45
- Lease liability
- $9,698.45
Initial journal entry
Posted Jan 31, 2020
| Account | Memo | Debit | Credit |
|---|---|---|---|
| ROU Asset - Operating Leases | Recognize ROU asset at commencement | $9,698.45 | |
| Operating Lease Liability | Recognize lease liability | $9,698.45 | |
| In balance | $9,698.45 | $9,698.45 | |
Amortization schedule
Operating lease: single straight-line lease cost; ROU amortization is the residual.
| # | Date | Payment | Liability begin | Interest | Liability end | ROU begin | ROU amort. | ROU end | Lease expense | Note |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Jan 31, 2020 | $168.68 | $9,698.45 | $13.66 | $9,543.43 | $9,698.45 | $155.02 | $9,543.43 | $168.68 | |
| 2 | Feb 29, 2020 | $168.68 | $9,543.43 | $13.44 | $9,388.19 | $9,543.43 | $155.24 | $9,388.19 | $168.68 | |
| 3 | Mar 31, 2020 | $168.68 | $9,388.19 | $13.22 | $9,232.73 | $9,388.19 | $155.46 | $9,232.73 | $168.68 | |
| 4 | Apr 30, 2020 | $168.68 | $9,232.73 | $13.00 | $9,077.05 | $9,232.73 | $155.68 | $9,077.05 | $168.68 | |
| 5 | May 31, 2020 | $168.68 | $9,077.05 | $12.78 | $8,921.15 | $9,077.05 | $155.90 | $8,921.15 | $168.68 | |
| 6 | Jun 30, 2020 | $168.68 | $8,921.15 | $12.56 | $8,765.03 | $8,921.15 | $156.12 | $8,765.03 | $168.68 | |
| 7 | Jul 31, 2020 | $168.68 | $8,765.03 | $12.34 | $8,608.69 | $8,765.03 | $156.34 | $8,608.69 | $168.68 | |
| 8 | Aug 31, 2020 | $168.68 | $8,608.69 | $12.12 | $8,452.13 | $8,608.69 | $156.56 | $8,452.13 | $168.68 | |
| 9 | Sep 30, 2020 | $168.68 | $8,452.13 | $11.90 | $8,295.35 | $8,452.13 | $156.78 | $8,295.35 | $168.68 | |
| 10 | Oct 31, 2020 | $168.68 | $8,295.35 | $11.68 | $8,138.35 | $8,295.35 | $157.00 | $8,138.35 | $168.68 | |
| 11 | Nov 30, 2020 | $168.68 | $8,138.35 | $11.46 | $7,981.13 | $8,138.35 | $157.22 | $7,981.13 | $168.68 | |
| 12 | Dec 31, 2020 | $168.68 | $7,981.13 | $11.24 | $7,823.69 | $7,981.13 | $157.44 | $7,823.69 | $168.68 | |
| 13 | Jan 31, 2021 | $168.68 | $7,823.69 | $11.02 | $7,666.03 | $7,823.69 | $157.66 | $7,666.03 | $168.68 | |
| 14 | Feb 28, 2021 | $168.68 | $7,666.03 | $10.80 | $7,508.15 | $7,666.03 | $157.88 | $7,508.15 | $168.68 | |
| 15 | Mar 31, 2021 | $168.68 | $7,508.15 | $10.57 | $7,350.04 | $7,508.15 | $158.11 | $7,350.04 | $168.68 | |
| 16 | Apr 30, 2021 | $168.68 | $7,350.04 | $10.35 | $7,191.71 | $7,350.04 | $158.33 | $7,191.71 | $168.68 | |
| 17 | May 31, 2021 | $168.68 | $7,191.71 | $10.13 | $7,033.16 | $7,191.71 | $158.55 | $7,033.16 | $168.68 | |
| 18 | Jun 30, 2021 | $168.68 | $7,033.16 | $9.91 | $6,874.39 | $7,033.16 | $158.77 | $6,874.39 | $168.68 | |
| 19 | Jul 31, 2021 | $168.68 | $6,874.39 | $9.68 | $6,715.39 | $6,874.39 | $159.00 | $6,715.39 | $168.68 | |
| 20 | Aug 31, 2021 | $168.68 | $6,715.39 | $9.46 | $6,556.17 | $6,715.39 | $159.22 | $6,556.17 | $168.68 | |
| 21 | Sep 30, 2021 | $168.68 | $6,556.17 | $9.23 | $6,396.72 | $6,556.17 | $159.45 | $6,396.72 | $168.68 | |
| 22 | Oct 31, 2021 | $168.68 | $6,396.72 | $9.01 | $6,237.05 | $6,396.72 | $159.67 | $6,237.05 | $168.68 | |
| 23 | Nov 30, 2021 | $168.68 | $6,237.05 | $8.78 | $6,077.15 | $6,237.05 | $159.90 | $6,077.15 | $168.68 | |
| 24 | Dec 31, 2021 | $168.68 | $6,077.15 | $8.56 | $5,917.03 | $6,077.15 | $160.12 | $5,917.03 | $168.68 | |
| 25 | Jan 31, 2022 | $168.68 | $5,917.03 | $8.33 | $5,756.68 | $5,917.03 | $160.35 | $5,756.68 | $168.68 | |
| 26 | Feb 28, 2022 | $168.68 | $5,756.68 | $8.11 | $5,596.11 | $5,756.68 | $160.57 | $5,596.11 | $168.68 | |
| 27 | Mar 31, 2022 | $168.68 | $5,596.11 | $7.88 | $5,435.31 | $5,596.11 | $160.80 | $5,435.31 | $168.68 | |
| 28 | Apr 30, 2022 | $168.68 | $5,435.31 | $7.65 | $5,274.28 | $5,435.31 | $161.03 | $5,274.28 | $168.68 | |
| 29 | May 31, 2022 | $168.68 | $5,274.28 | $7.43 | $5,113.03 | $5,274.28 | $161.25 | $5,113.03 | $168.68 | |
| 30 | Jun 30, 2022 | $168.68 | $5,113.03 | $7.20 | $4,951.55 | $5,113.03 | $161.48 | $4,951.55 | $168.68 | |
| 31 | Jul 31, 2022 | $168.68 | $4,951.55 | $6.97 | $4,789.84 | $4,951.55 | $161.71 | $4,789.84 | $168.68 | |
| 32 | Aug 31, 2022 | $168.68 | $4,789.84 | $6.75 | $4,627.91 | $4,789.84 | $161.93 | $4,627.91 | $168.68 | |
| 33 | Sep 30, 2022 | $168.68 | $4,627.91 | $6.52 | $4,465.75 | $4,627.91 | $162.16 | $4,465.75 | $168.68 | |
| 34 | Oct 31, 2022 | $168.68 | $4,465.75 | $6.29 | $4,303.36 | $4,465.75 | $162.39 | $4,303.36 | $168.68 | |
| 35 | Nov 30, 2022 | $168.68 | $4,303.36 | $6.06 | $4,140.74 | $4,303.36 | $162.62 | $4,140.74 | $168.68 | |
| 36 | Dec 31, 2022 | $168.68 | $4,140.74 | $5.83 | $3,977.89 | $4,140.74 | $162.85 | $3,977.89 | $168.68 | |
| 37 | Jan 31, 2023 | $168.68 | $3,977.89 | $5.60 | $3,814.81 | $3,977.89 | $163.08 | $3,814.81 | $168.68 | |
| 38 | Feb 28, 2023 | $168.68 | $3,814.81 | $5.37 | $3,651.50 | $3,814.81 | $163.31 | $3,651.50 | $168.68 | |
| 39 | Mar 31, 2023 | $168.68 | $3,651.50 | $5.14 | $3,487.96 | $3,651.50 | $163.54 | $3,487.96 | $168.68 | |
| 40 | Apr 30, 2023 | $168.68 | $3,487.96 | $4.91 | $3,324.19 | $3,487.96 | $163.77 | $3,324.19 | $168.68 | |
| 41 | May 31, 2023 | $168.68 | $3,324.19 | $4.68 | $3,160.19 | $3,324.19 | $164.00 | $3,160.19 | $168.68 | |
| 42 | Jun 30, 2023 | $168.68 | $3,160.19 | $4.45 | $2,995.96 | $3,160.19 | $164.23 | $2,995.96 | $168.68 | |
| 43 | Jul 31, 2023 | $168.68 | $2,995.96 | $4.22 | $2,831.50 | $2,995.96 | $164.46 | $2,831.50 | $168.68 | |
| 44 | Aug 31, 2023 | $168.68 | $2,831.50 | $3.99 | $2,666.81 | $2,831.50 | $164.69 | $2,666.81 | $168.68 | |
| 45 | Sep 30, 2023 | $168.68 | $2,666.81 | $3.76 | $2,501.89 | $2,666.81 | $164.92 | $2,501.89 | $168.68 | |
| 46 | Oct 31, 2023 | $168.68 | $2,501.89 | $3.52 | $2,336.73 | $2,501.89 | $165.16 | $2,336.73 | $168.68 | |
| 47 | Nov 30, 2023 | $168.68 | $2,336.73 | $3.29 | $2,171.34 | $2,336.73 | $165.39 | $2,171.34 | $168.68 | |
| 48 | Dec 31, 2023 | $168.68 | $2,171.34 | $3.06 | $2,005.72 | $2,171.34 | $165.62 | $2,005.72 | $168.68 | |
| 49 | Jan 31, 2024 | $168.68 | $2,005.72 | $2.82 | $1,839.86 | $2,005.72 | $165.86 | $1,839.86 | $168.68 | |
| 50 | Feb 29, 2024 | $168.68 | $1,839.86 | $2.59 | $1,673.77 | $1,839.86 | $166.09 | $1,673.77 | $168.68 | |
| 51 | Mar 31, 2024 | $168.68 | $1,673.77 | $2.36 | $1,507.45 | $1,673.77 | $166.32 | $1,507.45 | $168.68 | |
| 52 | Apr 30, 2024 | $168.68 | $1,507.45 | $2.12 | $1,340.89 | $1,507.45 | $166.56 | $1,340.89 | $168.68 | |
| 53 | May 31, 2024 | $168.68 | $1,340.89 | $1.89 | $1,174.10 | $1,340.89 | $166.79 | $1,174.10 | $168.68 | |
| 54 | Jun 30, 2024 | $168.68 | $1,174.10 | $1.65 | $1,007.07 | $1,174.10 | $167.03 | $1,007.07 | $168.68 | |
| 55 | Jul 31, 2024 | $168.68 | $1,007.07 | $1.42 | $839.81 | $1,007.07 | $167.26 | $839.81 | $168.68 | |
| 56 | Aug 31, 2024 | $168.68 | $839.81 | $1.18 | $672.31 | $839.81 | $167.50 | $672.31 | $168.68 | |
| 57 | Sep 30, 2024 | $168.68 | $672.31 | $0.95 | $504.58 | $672.31 | $167.73 | $504.58 | $168.68 | |
| 58 | Oct 31, 2024 | $168.68 | $504.58 | $0.71 | $336.61 | $504.58 | $167.97 | $336.61 | $168.68 | |
| 59 | Nov 30, 2024 | $168.68 | $336.61 | $0.47 | $168.40 | $336.61 | $168.21 | $168.40 | $168.68 | |
| 60 | Dec 31, 2024 | $168.68 | $168.40 | $0.28 | $0.00 | $168.40 | $168.40 | $0.00 | $168.68 | |
| Totals | $10,120.80 | $422.35 | $9,698.45 | $0.00 | $10,120.80 | |||||
Recurring journal entry — period 1
Representative entry; one entry per period follows the schedule. Use “Export journal entries” for the full set.
| Account | Memo | Debit | Credit |
|---|---|---|---|
| Operating Lease Expense | Straight-line lease cost | $168.68 | |
| Operating Lease Liability | Lease liability reduction | $155.02 | |
| Cash / Accounts Payable | Lease payment | $168.68 | |
| ROU Asset - Operating Leases | ROU amortization | $155.02 | |
| In balance | $323.70 | $323.70 | |