L31
financeActive4 Laptops #1949131
Lease terms
- Entity
- Beckenhauer Construction Leasing, LLC (BL)
- Lessor
- Great American Financial
- Asset class
- Computer / IT
- Asset category
- Computer
- Asset ID / serial
- L31
- Commencement
- Jan 5, 2024
- Lease end
- Dec 5, 2027
- Rent commencement
- Feb 5, 2024
- Payment timing
- Arrears · monthly
- Lease term
- 48 base periods
Measurement inputs
- Discount rate
- 4.37% annual (0.364% monthly)
- Rate basis
- Imported from ROU-01 workbook (template cell J24).
- Useful life
- 60 months
- Fair value
- $9,992.52
- Initial direct costs
- $0.00
- Prepayment
- $0.00
- Lease incentive
- $0.00
- Undiscounted payments
- $12,394.08
Classification — ASC 842-10-25-2
Recorded classification: finance (manual override — Classification imported from the ROU-01 workbook.)
✗
(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
Lease term 48mo / useful life 60mo = 80% (guideline 75%).
✓
(d) PV of payments is substantially all of fair value
PV 11352.38 / fair value 9992.52 = 113.6% (guideline 90%).
✗
(e) Specialized asset with no alternative use
Criterion not met (judgement).
Lease status
Initial measurement — ASC 842-20-30
- PV of lease payments
- $11,352.38
- + Initial direct costs
- $0.00
- + Prepayment
- $0.00
- + Lease incentive
- $0.00
- = ROU asset
- $11,352.38
- Lease liability
- $11,352.38
Initial journal entry
Posted Feb 5, 2024
| Account | Memo | Debit | Credit |
|---|---|---|---|
| ROU Asset - Finance Leases | Recognize ROU asset at commencement | $11,352.38 | |
| Finance Lease Liability | Recognize lease liability | $11,352.38 | |
| In balance | $11,352.38 | $11,352.38 | |
Amortization schedule
Finance lease: interest on the liability + straight-line amortization of the ROU asset.
| # | Date | Payment | Liability begin | Interest | Liability end | ROU begin | ROU amort. | ROU end | Total expense | Note |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Feb 5, 2024 | $258.21 | $11,352.38 | $41.34 | $11,135.51 | $11,352.38 | $236.51 | $11,115.87 | $277.85 | |
| 2 | Mar 5, 2024 | $258.21 | $11,135.51 | $40.55 | $10,917.85 | $11,115.87 | $236.51 | $10,879.36 | $277.06 | |
| 3 | Apr 5, 2024 | $258.21 | $10,917.85 | $39.76 | $10,699.40 | $10,879.36 | $236.51 | $10,642.85 | $276.27 | |
| 4 | May 5, 2024 | $258.21 | $10,699.40 | $38.96 | $10,480.15 | $10,642.85 | $236.51 | $10,406.34 | $275.47 | |
| 5 | Jun 5, 2024 | $258.21 | $10,480.15 | $38.17 | $10,260.11 | $10,406.34 | $236.51 | $10,169.83 | $274.68 | |
| 6 | Jul 5, 2024 | $258.21 | $10,260.11 | $37.36 | $10,039.26 | $10,169.83 | $236.51 | $9,933.32 | $273.87 | |
| 7 | Aug 5, 2024 | $258.21 | $10,039.26 | $36.56 | $9,817.61 | $9,933.32 | $236.51 | $9,696.81 | $273.07 | |
| 8 | Sep 5, 2024 | $258.21 | $9,817.61 | $35.75 | $9,595.15 | $9,696.81 | $236.51 | $9,460.30 | $272.26 | |
| 9 | Oct 5, 2024 | $258.21 | $9,595.15 | $34.94 | $9,371.88 | $9,460.30 | $236.51 | $9,223.79 | $271.45 | |
| 10 | Nov 5, 2024 | $258.21 | $9,371.88 | $34.13 | $9,147.80 | $9,223.79 | $236.51 | $8,987.28 | $270.64 | |
| 11 | Dec 5, 2024 | $258.21 | $9,147.80 | $33.31 | $8,922.90 | $8,987.28 | $236.51 | $8,750.77 | $269.82 | |
| 12 | Jan 5, 2025 | $258.21 | $8,922.90 | $32.49 | $8,697.18 | $8,750.77 | $236.51 | $8,514.26 | $269.00 | |
| 13 | Feb 5, 2025 | $258.21 | $8,697.18 | $31.67 | $8,470.64 | $8,514.26 | $236.51 | $8,277.75 | $268.18 | |
| 14 | Mar 5, 2025 | $258.21 | $8,470.64 | $30.85 | $8,243.28 | $8,277.75 | $236.51 | $8,041.24 | $267.36 | |
| 15 | Apr 5, 2025 | $258.21 | $8,243.28 | $30.02 | $8,015.09 | $8,041.24 | $236.51 | $7,804.73 | $266.53 | |
| 16 | May 5, 2025 | $258.21 | $8,015.09 | $29.19 | $7,786.07 | $7,804.73 | $236.51 | $7,568.22 | $265.70 | |
| 17 | Jun 5, 2025 | $258.21 | $7,786.07 | $28.35 | $7,556.21 | $7,568.22 | $236.51 | $7,331.71 | $264.86 | |
| 18 | Jul 5, 2025 | $258.21 | $7,556.21 | $27.52 | $7,325.52 | $7,331.71 | $236.51 | $7,095.20 | $264.03 | |
| 19 | Aug 5, 2025 | $258.21 | $7,325.52 | $26.68 | $7,093.99 | $7,095.20 | $236.51 | $6,858.69 | $263.19 | |
| 20 | Sep 5, 2025 | $258.21 | $7,093.99 | $25.83 | $6,861.61 | $6,858.69 | $236.51 | $6,622.18 | $262.34 | |
| 21 | Oct 5, 2025 | $258.21 | $6,861.61 | $24.99 | $6,628.39 | $6,622.18 | $236.51 | $6,385.67 | $261.50 | |
| 22 | Nov 5, 2025 | $258.21 | $6,628.39 | $24.14 | $6,394.32 | $6,385.67 | $236.51 | $6,149.16 | $260.65 | |
| 23 | Dec 5, 2025 | $258.21 | $6,394.32 | $23.29 | $6,159.40 | $6,149.16 | $236.51 | $5,912.65 | $259.80 | |
| 24 | Jan 5, 2026 | $258.21 | $6,159.40 | $22.43 | $5,923.62 | $5,912.65 | $236.51 | $5,676.14 | $258.94 | |
| 25 | Feb 5, 2026 | $258.21 | $5,923.62 | $21.57 | $5,686.98 | $5,676.14 | $236.51 | $5,439.63 | $258.08 | |
| 26 | Mar 5, 2026 | $258.21 | $5,686.98 | $20.71 | $5,449.48 | $5,439.63 | $236.51 | $5,203.12 | $257.22 | |
| 27 | Apr 5, 2026 | $258.21 | $5,449.48 | $19.85 | $5,211.12 | $5,203.12 | $236.51 | $4,966.61 | $256.36 | |
| 28 | May 5, 2026 | $258.21 | $5,211.12 | $18.98 | $4,971.89 | $4,966.61 | $236.51 | $4,730.10 | $255.49 | |
| 29 | Jun 5, 2026 | $258.21 | $4,971.89 | $18.11 | $4,731.79 | $4,730.10 | $236.51 | $4,493.59 | $254.62 | |
| 30 | Jul 5, 2026 | $258.21 | $4,731.79 | $17.23 | $4,490.81 | $4,493.59 | $236.50 | $4,257.09 | $253.73 | |
| 31 | Aug 5, 2026 | $258.21 | $4,490.81 | $16.35 | $4,248.95 | $4,257.09 | $236.51 | $4,020.58 | $252.86 | |
| 32 | Sep 5, 2026 | $258.21 | $4,248.95 | $15.47 | $4,006.21 | $4,020.58 | $236.50 | $3,784.08 | $251.97 | |
| 33 | Oct 5, 2026 | $258.21 | $4,006.21 | $14.59 | $3,762.59 | $3,784.08 | $236.51 | $3,547.57 | $251.10 | |
| 34 | Nov 5, 2026 | $258.21 | $3,762.59 | $13.70 | $3,518.08 | $3,547.57 | $236.50 | $3,311.07 | $250.20 | |
| 35 | Dec 5, 2026 | $258.21 | $3,518.08 | $12.81 | $3,272.68 | $3,311.07 | $236.51 | $3,074.56 | $249.32 | |
| 36 | Jan 5, 2027 | $258.21 | $3,272.68 | $11.92 | $3,026.39 | $3,074.56 | $236.50 | $2,838.06 | $248.42 | |
| 37 | Feb 5, 2027 | $258.21 | $3,026.39 | $11.02 | $2,779.20 | $2,838.06 | $236.51 | $2,601.55 | $247.53 | |
| 38 | Mar 5, 2027 | $258.21 | $2,779.20 | $10.12 | $2,531.11 | $2,601.55 | $236.50 | $2,365.05 | $246.62 | |
| 39 | Apr 5, 2027 | $258.21 | $2,531.11 | $9.22 | $2,282.12 | $2,365.05 | $236.51 | $2,128.54 | $245.73 | |
| 40 | May 5, 2027 | $258.21 | $2,282.12 | $8.31 | $2,032.22 | $2,128.54 | $236.50 | $1,892.04 | $244.81 | |
| 41 | Jun 5, 2027 | $258.21 | $2,032.22 | $7.40 | $1,781.41 | $1,892.04 | $236.51 | $1,655.53 | $243.91 | |
| 42 | Jul 5, 2027 | $258.21 | $1,781.41 | $6.49 | $1,529.69 | $1,655.53 | $236.50 | $1,419.03 | $242.99 | |
| 43 | Aug 5, 2027 | $258.21 | $1,529.69 | $5.57 | $1,277.05 | $1,419.03 | $236.51 | $1,182.52 | $242.08 | |
| 44 | Sep 5, 2027 | $258.21 | $1,277.05 | $4.65 | $1,023.49 | $1,182.52 | $236.50 | $946.02 | $241.15 | |
| 45 | Oct 5, 2027 | $258.21 | $1,023.49 | $3.73 | $769.01 | $946.02 | $236.51 | $709.51 | $240.24 | |
| 46 | Nov 5, 2027 | $258.21 | $769.01 | $2.80 | $513.60 | $709.51 | $236.50 | $473.01 | $239.30 | |
| 47 | Dec 5, 2027 | $258.21 | $513.60 | $1.87 | $257.26 | $473.01 | $236.51 | $236.50 | $238.38 | |
| 48 | Jan 5, 2028 | $258.21 | $257.26 | $0.95 | $0.00 | $236.50 | $236.50 | $0.00 | $237.45 | |
| Totals | $12,394.08 | $1,041.70 | $11,352.38 | $0.00 | $12,394.08 | |||||
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 |
|---|---|---|---|
| Interest Expense | Interest accretion | $41.34 | |
| Finance Lease Liability | Interest accretion | $41.34 | |
| Finance Lease Liability | Lease payment | $258.21 | |
| Cash / Accounts Payable | Lease payment | $258.21 | |
| Amortization of ROU Asset | ROU amortization | $236.51 | |
| Accumulated Amortization - Finance ROU | ROU amortization | $236.51 | |
| In balance | $536.06 | $536.06 | |