L29
Active3 Laptops
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
- Great American Financial
- Asset class
- Computer / IT
- Asset category
- Computer
- Asset ID / serial
- #29
- Commencement
- Aug 14, 2023
- Lease end
- Jul 14, 2027
- Rent commencement
- Aug 14, 2023
- Payment timing
- Arrears · monthly
- Lease term
- 48 base periods
Measurement inputs
- Discount rate
- 5.37% annual (0.448% 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
- $20,215.68
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
- $18,155.58
- + Initial direct costs
- $0.00
- + Prepayment
- $0.00
- + Lease incentive
- $0.00
- = ROU asset
- $18,155.58
- Lease liability
- $18,155.58
Initial journal entry
Posted Aug 14, 2023
| Account | Memo | Debit | Credit |
|---|---|---|---|
| ROU Asset - Operating Leases | Recognize ROU asset at commencement | $18,155.58 | |
| Operating Lease Liability | Recognize lease liability | $18,155.58 | |
| In balance | $18,155.58 | $18,155.58 | |
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 | Aug 14, 2023 | $421.16 | $18,155.58 | $81.25 | $17,815.67 | $18,155.58 | $339.91 | $17,815.67 | $421.16 | |
| 2 | Sep 14, 2023 | $421.16 | $17,815.67 | $79.73 | $17,474.24 | $17,815.67 | $341.43 | $17,474.24 | $421.16 | |
| 3 | Oct 14, 2023 | $421.16 | $17,474.24 | $78.20 | $17,131.28 | $17,474.24 | $342.96 | $17,131.28 | $421.16 | |
| 4 | Nov 14, 2023 | $421.16 | $17,131.28 | $76.66 | $16,786.78 | $17,131.28 | $344.50 | $16,786.78 | $421.16 | |
| 5 | Dec 14, 2023 | $421.16 | $16,786.78 | $75.12 | $16,440.74 | $16,786.78 | $346.04 | $16,440.74 | $421.16 | |
| 6 | Jan 14, 2024 | $421.16 | $16,440.74 | $73.57 | $16,093.15 | $16,440.74 | $347.59 | $16,093.15 | $421.16 | |
| 7 | Feb 14, 2024 | $421.16 | $16,093.15 | $72.02 | $15,744.01 | $16,093.15 | $349.14 | $15,744.01 | $421.16 | |
| 8 | Mar 14, 2024 | $421.16 | $15,744.01 | $70.45 | $15,393.30 | $15,744.01 | $350.71 | $15,393.30 | $421.16 | |
| 9 | Apr 14, 2024 | $421.16 | $15,393.30 | $68.89 | $15,041.03 | $15,393.30 | $352.27 | $15,041.03 | $421.16 | |
| 10 | May 14, 2024 | $421.16 | $15,041.03 | $67.31 | $14,687.18 | $15,041.03 | $353.85 | $14,687.18 | $421.16 | |
| 11 | Jun 14, 2024 | $421.16 | $14,687.18 | $65.73 | $14,331.75 | $14,687.18 | $355.43 | $14,331.75 | $421.16 | |
| 12 | Jul 14, 2024 | $421.16 | $14,331.75 | $64.13 | $13,974.72 | $14,331.75 | $357.03 | $13,974.72 | $421.16 | |
| 13 | Aug 14, 2024 | $421.16 | $13,974.72 | $62.54 | $13,616.10 | $13,974.72 | $358.62 | $13,616.10 | $421.16 | |
| 14 | Sep 14, 2024 | $421.16 | $13,616.10 | $60.93 | $13,255.87 | $13,616.10 | $360.23 | $13,255.87 | $421.16 | |
| 15 | Oct 14, 2024 | $421.16 | $13,255.87 | $59.32 | $12,894.03 | $13,255.87 | $361.84 | $12,894.03 | $421.16 | |
| 16 | Nov 14, 2024 | $421.16 | $12,894.03 | $57.70 | $12,530.57 | $12,894.03 | $363.46 | $12,530.57 | $421.16 | |
| 17 | Dec 14, 2024 | $421.16 | $12,530.57 | $56.07 | $12,165.48 | $12,530.57 | $365.09 | $12,165.48 | $421.16 | |
| 18 | Jan 14, 2025 | $421.16 | $12,165.48 | $54.44 | $11,798.76 | $12,165.48 | $366.72 | $11,798.76 | $421.16 | |
| 19 | Feb 14, 2025 | $421.16 | $11,798.76 | $52.80 | $11,430.40 | $11,798.76 | $368.36 | $11,430.40 | $421.16 | |
| 20 | Mar 14, 2025 | $421.16 | $11,430.40 | $51.15 | $11,060.39 | $11,430.40 | $370.01 | $11,060.39 | $421.16 | |
| 21 | Apr 14, 2025 | $421.16 | $11,060.39 | $49.50 | $10,688.73 | $11,060.39 | $371.66 | $10,688.73 | $421.16 | |
| 22 | May 14, 2025 | $421.16 | $10,688.73 | $47.83 | $10,315.40 | $10,688.73 | $373.33 | $10,315.40 | $421.16 | |
| 23 | Jun 14, 2025 | $421.16 | $10,315.40 | $46.16 | $9,940.40 | $10,315.40 | $375.00 | $9,940.40 | $421.16 | |
| 24 | Jul 14, 2025 | $421.16 | $9,940.40 | $44.48 | $9,563.72 | $9,940.40 | $376.68 | $9,563.72 | $421.16 | |
| 25 | Aug 14, 2025 | $421.16 | $9,563.72 | $42.80 | $9,185.36 | $9,563.72 | $378.36 | $9,185.36 | $421.16 | |
| 26 | Sep 14, 2025 | $421.16 | $9,185.36 | $41.10 | $8,805.30 | $9,185.36 | $380.06 | $8,805.30 | $421.16 | |
| 27 | Oct 14, 2025 | $421.16 | $8,805.30 | $39.40 | $8,423.54 | $8,805.30 | $381.76 | $8,423.54 | $421.16 | |
| 28 | Nov 14, 2025 | $421.16 | $8,423.54 | $37.70 | $8,040.08 | $8,423.54 | $383.46 | $8,040.08 | $421.16 | |
| 29 | Dec 14, 2025 | $421.16 | $8,040.08 | $35.98 | $7,654.90 | $8,040.08 | $385.18 | $7,654.90 | $421.16 | |
| 30 | Jan 14, 2026 | $421.16 | $7,654.90 | $34.26 | $7,268.00 | $7,654.90 | $386.90 | $7,268.00 | $421.16 | |
| 31 | Feb 14, 2026 | $421.16 | $7,268.00 | $32.52 | $6,879.36 | $7,268.00 | $388.64 | $6,879.36 | $421.16 | |
| 32 | Mar 14, 2026 | $421.16 | $6,879.36 | $30.79 | $6,488.99 | $6,879.36 | $390.37 | $6,488.99 | $421.16 | |
| 33 | Apr 14, 2026 | $421.16 | $6,488.99 | $29.04 | $6,096.87 | $6,488.99 | $392.12 | $6,096.87 | $421.16 | |
| 34 | May 14, 2026 | $421.16 | $6,096.87 | $27.28 | $5,702.99 | $6,096.87 | $393.88 | $5,702.99 | $421.16 | |
| 35 | Jun 14, 2026 | $421.16 | $5,702.99 | $25.52 | $5,307.35 | $5,702.99 | $395.64 | $5,307.35 | $421.16 | |
| 36 | Jul 14, 2026 | $421.16 | $5,307.35 | $23.75 | $4,909.94 | $5,307.35 | $397.41 | $4,909.94 | $421.16 | |
| 37 | Aug 14, 2026 | $421.16 | $4,909.94 | $21.97 | $4,510.75 | $4,909.94 | $399.19 | $4,510.75 | $421.16 | |
| 38 | Sep 14, 2026 | $421.16 | $4,510.75 | $20.19 | $4,109.78 | $4,510.75 | $400.97 | $4,109.78 | $421.16 | |
| 39 | Oct 14, 2026 | $421.16 | $4,109.78 | $18.39 | $3,707.01 | $4,109.78 | $402.77 | $3,707.01 | $421.16 | |
| 40 | Nov 14, 2026 | $421.16 | $3,707.01 | $16.59 | $3,302.44 | $3,707.01 | $404.57 | $3,302.44 | $421.16 | |
| 41 | Dec 14, 2026 | $421.16 | $3,302.44 | $14.78 | $2,896.06 | $3,302.44 | $406.38 | $2,896.06 | $421.16 | |
| 42 | Jan 14, 2027 | $421.16 | $2,896.06 | $12.96 | $2,487.86 | $2,896.06 | $408.20 | $2,487.86 | $421.16 | |
| 43 | Feb 14, 2027 | $421.16 | $2,487.86 | $11.13 | $2,077.83 | $2,487.86 | $410.03 | $2,077.83 | $421.16 | |
| 44 | Mar 14, 2027 | $421.16 | $2,077.83 | $9.30 | $1,665.97 | $2,077.83 | $411.86 | $1,665.97 | $421.16 | |
| 45 | Apr 14, 2027 | $421.16 | $1,665.97 | $7.46 | $1,252.27 | $1,665.97 | $413.70 | $1,252.27 | $421.16 | |
| 46 | May 14, 2027 | $421.16 | $1,252.27 | $5.60 | $836.71 | $1,252.27 | $415.56 | $836.71 | $421.16 | |
| 47 | Jun 14, 2027 | $421.16 | $836.71 | $3.74 | $419.29 | $836.71 | $417.42 | $419.29 | $421.16 | |
| 48 | Jul 14, 2027 | $421.16 | $419.29 | $1.87 | $0.00 | $419.29 | $419.29 | $0.00 | $421.16 | |
| Totals | $20,215.68 | $2,060.10 | $18,155.58 | $0.00 | $20,215.68 | |||||
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 | $421.16 | |
| Operating Lease Liability | Lease liability reduction | $339.91 | |
| Cash / Accounts Payable | Lease payment | $421.16 | |
| ROU Asset - Operating Leases | ROU amortization | $339.91 | |
| In balance | $761.07 | $761.07 | |