L32
financeActive1 Laptop #1973229
Lease terms
- Entity
- Beckenhauer Construction Leasing, LLC (BL)
- Lessor
- Great American Financial
- Asset class
- Computer / IT
- Asset category
- Computer
- Asset ID / serial
- L32
- Commencement
- Mar 8, 2024
- Lease end
- Feb 8, 2028
- Rent commencement
- Mar 8, 2024
- Payment timing
- Arrears · monthly
- Lease term
- 48 base periods
Measurement inputs
- Discount rate
- 4.36% annual (0.363% monthly)
- Rate basis
- Imported from ROU-01 workbook (template cell J24).
- Useful life
- 60 months
- Fair value
- $1,679.70
- Initial direct costs
- $0.00
- Prepayment
- $0.00
- Lease incentive
- $0.00
- Undiscounted payments
- $2,476.80
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 2269.08 / fair value 1679.7 = 135.1% (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
- $2,269.08
- + Initial direct costs
- $0.00
- + Prepayment
- $0.00
- + Lease incentive
- $0.00
- = ROU asset
- $2,269.08
- Lease liability
- $2,269.08
Initial journal entry
Posted Mar 8, 2024
| Account | Memo | Debit | Credit |
|---|---|---|---|
| ROU Asset - Finance Leases | Recognize ROU asset at commencement | $2,269.08 | |
| Finance Lease Liability | Recognize lease liability | $2,269.08 | |
| In balance | $2,269.08 | $2,269.08 | |
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 | Mar 8, 2024 | $51.60 | $2,269.08 | $8.24 | $2,225.72 | $2,269.08 | $47.27 | $2,221.81 | $55.51 | |
| 2 | Apr 8, 2024 | $51.60 | $2,225.72 | $8.09 | $2,182.21 | $2,221.81 | $47.27 | $2,174.54 | $55.36 | |
| 3 | May 8, 2024 | $51.60 | $2,182.21 | $7.93 | $2,138.54 | $2,174.54 | $47.27 | $2,127.27 | $55.20 | |
| 4 | Jun 8, 2024 | $51.60 | $2,138.54 | $7.77 | $2,094.71 | $2,127.27 | $47.27 | $2,080.00 | $55.04 | |
| 5 | Jul 8, 2024 | $51.60 | $2,094.71 | $7.61 | $2,050.72 | $2,080.00 | $47.27 | $2,032.73 | $54.88 | |
| 6 | Aug 8, 2024 | $51.60 | $2,050.72 | $7.45 | $2,006.57 | $2,032.73 | $47.27 | $1,985.46 | $54.72 | |
| 7 | Sep 8, 2024 | $51.60 | $2,006.57 | $7.29 | $1,962.26 | $1,985.46 | $47.27 | $1,938.19 | $54.56 | |
| 8 | Oct 8, 2024 | $51.60 | $1,962.26 | $7.13 | $1,917.79 | $1,938.19 | $47.27 | $1,890.92 | $54.40 | |
| 9 | Nov 8, 2024 | $51.60 | $1,917.79 | $6.97 | $1,873.16 | $1,890.92 | $47.27 | $1,843.65 | $54.24 | |
| 10 | Dec 8, 2024 | $51.60 | $1,873.16 | $6.81 | $1,828.37 | $1,843.65 | $47.27 | $1,796.38 | $54.08 | |
| 11 | Jan 8, 2025 | $51.60 | $1,828.37 | $6.64 | $1,783.41 | $1,796.38 | $47.27 | $1,749.11 | $53.91 | |
| 12 | Feb 8, 2025 | $51.60 | $1,783.41 | $6.48 | $1,738.29 | $1,749.11 | $47.27 | $1,701.84 | $53.75 | |
| 13 | Mar 8, 2025 | $51.60 | $1,738.29 | $6.32 | $1,693.01 | $1,701.84 | $47.27 | $1,654.57 | $53.59 | |
| 14 | Apr 8, 2025 | $51.60 | $1,693.01 | $6.15 | $1,647.56 | $1,654.57 | $47.27 | $1,607.30 | $53.42 | |
| 15 | May 8, 2025 | $51.60 | $1,647.56 | $5.99 | $1,601.95 | $1,607.30 | $47.27 | $1,560.03 | $53.26 | |
| 16 | Jun 8, 2025 | $51.60 | $1,601.95 | $5.82 | $1,556.17 | $1,560.03 | $47.27 | $1,512.76 | $53.09 | |
| 17 | Jul 8, 2025 | $51.60 | $1,556.17 | $5.65 | $1,510.22 | $1,512.76 | $47.27 | $1,465.49 | $52.92 | |
| 18 | Aug 8, 2025 | $51.60 | $1,510.22 | $5.49 | $1,464.11 | $1,465.49 | $47.27 | $1,418.22 | $52.76 | |
| 19 | Sep 8, 2025 | $51.60 | $1,464.11 | $5.32 | $1,417.83 | $1,418.22 | $47.27 | $1,370.95 | $52.59 | |
| 20 | Oct 8, 2025 | $51.60 | $1,417.83 | $5.15 | $1,371.38 | $1,370.95 | $47.27 | $1,323.68 | $52.42 | |
| 21 | Nov 8, 2025 | $51.60 | $1,371.38 | $4.98 | $1,324.76 | $1,323.68 | $47.27 | $1,276.41 | $52.25 | |
| 22 | Dec 8, 2025 | $51.60 | $1,324.76 | $4.81 | $1,277.97 | $1,276.41 | $47.27 | $1,229.14 | $52.08 | |
| 23 | Jan 8, 2026 | $51.60 | $1,277.97 | $4.64 | $1,231.01 | $1,229.14 | $47.27 | $1,181.87 | $51.91 | |
| 24 | Feb 8, 2026 | $51.60 | $1,231.01 | $4.47 | $1,183.88 | $1,181.87 | $47.27 | $1,134.60 | $51.74 | |
| 25 | Mar 8, 2026 | $51.60 | $1,183.88 | $4.30 | $1,136.58 | $1,134.60 | $47.28 | $1,087.32 | $51.58 | |
| 26 | Apr 8, 2026 | $51.60 | $1,136.58 | $4.13 | $1,089.11 | $1,087.32 | $47.27 | $1,040.05 | $51.40 | |
| 27 | May 8, 2026 | $51.60 | $1,089.11 | $3.96 | $1,041.47 | $1,040.05 | $47.28 | $992.77 | $51.24 | |
| 28 | Jun 8, 2026 | $51.60 | $1,041.47 | $3.78 | $993.65 | $992.77 | $47.27 | $945.50 | $51.05 | |
| 29 | Jul 8, 2026 | $51.60 | $993.65 | $3.61 | $945.66 | $945.50 | $47.28 | $898.22 | $50.89 | |
| 30 | Aug 8, 2026 | $51.60 | $945.66 | $3.44 | $897.50 | $898.22 | $47.27 | $850.95 | $50.71 | |
| 31 | Sep 8, 2026 | $51.60 | $897.50 | $3.26 | $849.16 | $850.95 | $47.28 | $803.67 | $50.54 | |
| 32 | Oct 8, 2026 | $51.60 | $849.16 | $3.09 | $800.65 | $803.67 | $47.27 | $756.40 | $50.36 | |
| 33 | Nov 8, 2026 | $51.60 | $800.65 | $2.91 | $751.96 | $756.40 | $47.28 | $709.12 | $50.19 | |
| 34 | Dec 8, 2026 | $51.60 | $751.96 | $2.73 | $703.09 | $709.12 | $47.27 | $661.85 | $50.00 | |
| 35 | Jan 8, 2027 | $51.60 | $703.09 | $2.55 | $654.04 | $661.85 | $47.28 | $614.57 | $49.83 | |
| 36 | Feb 8, 2027 | $51.60 | $654.04 | $2.38 | $604.82 | $614.57 | $47.27 | $567.30 | $49.65 | |
| 37 | Mar 8, 2027 | $51.60 | $604.82 | $2.20 | $555.42 | $567.30 | $47.28 | $520.02 | $49.48 | |
| 38 | Apr 8, 2027 | $51.60 | $555.42 | $2.02 | $505.84 | $520.02 | $47.27 | $472.75 | $49.29 | |
| 39 | May 8, 2027 | $51.60 | $505.84 | $1.84 | $456.08 | $472.75 | $47.28 | $425.47 | $49.12 | |
| 40 | Jun 8, 2027 | $51.60 | $456.08 | $1.66 | $406.14 | $425.47 | $47.27 | $378.20 | $48.93 | |
| 41 | Jul 8, 2027 | $51.60 | $406.14 | $1.48 | $356.02 | $378.20 | $47.28 | $330.92 | $48.76 | |
| 42 | Aug 8, 2027 | $51.60 | $356.02 | $1.29 | $305.71 | $330.92 | $47.27 | $283.65 | $48.56 | |
| 43 | Sep 8, 2027 | $51.60 | $305.71 | $1.11 | $255.22 | $283.65 | $47.28 | $236.37 | $48.39 | |
| 44 | Oct 8, 2027 | $51.60 | $255.22 | $0.93 | $204.55 | $236.37 | $47.27 | $189.10 | $48.20 | |
| 45 | Nov 8, 2027 | $51.60 | $204.55 | $0.74 | $153.69 | $189.10 | $47.28 | $141.82 | $48.02 | |
| 46 | Dec 8, 2027 | $51.60 | $153.69 | $0.56 | $102.65 | $141.82 | $47.27 | $94.55 | $47.83 | |
| 47 | Jan 8, 2028 | $51.60 | $102.65 | $0.37 | $51.42 | $94.55 | $47.28 | $47.27 | $47.65 | |
| 48 | Feb 8, 2028 | $51.60 | $51.42 | $0.18 | $0.00 | $47.27 | $47.27 | $0.00 | $47.45 | |
| Totals | $2,476.80 | $207.72 | $2,269.08 | $0.00 | $2,476.80 | |||||
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 |
|---|---|---|---|
| Interest Expense | Interest accretion | $8.24 | |
| Finance Lease Liability | Interest accretion | $8.24 | |
| Finance Lease Liability | Lease payment | $51.60 | |
| Cash / Accounts Payable | Lease payment | $51.60 | |
| Amortization of ROU Asset | ROU amortization | $47.27 | |
| Accumulated Amortization - Finance ROU | ROU amortization | $47.27 | |
| In balance | $107.11 | $107.11 | |