L33
financeActive6 Laptops #3112271
Lease terms
- Entity
- Beckenhauer Construction Leasing, LLC (BL)
- Lessor
- Great American Financial
- Asset class
- Computer / IT
- Asset category
- Computer
- Asset ID / serial
- L33
- Commencement
- Jan 14, 2025
- Lease end
- Dec 14, 2028
- Rent commencement
- Jan 14, 2025
- Payment timing
- Arrears · monthly
- Lease term
- 48 base periods
Measurement inputs
- Discount rate
- 4.98% annual (0.415% monthly)
- Rate basis
- Imported from ROU-01 workbook (template cell J24).
- Useful life
- 60 months
- Fair value
- Not provided
- Initial direct costs
- $0.00
- Prepayment
- $0.00
- Lease incentive
- $0.00
- Undiscounted payments
- $26,670.24
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
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
- $24,136.59
- + Initial direct costs
- $0.00
- + Prepayment
- $0.00
- + Lease incentive
- $0.00
- = ROU asset
- $24,136.59
- Lease liability
- $24,136.59
Initial journal entry
Posted Jan 14, 2025
| Account | Memo | Debit | Credit |
|---|---|---|---|
| ROU Asset - Finance Leases | Recognize ROU asset at commencement | $24,136.59 | |
| Finance Lease Liability | Recognize lease liability | $24,136.59 | |
| In balance | $24,136.59 | $24,136.59 | |
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 | Jan 14, 2025 | $555.63 | $24,136.59 | $100.17 | $23,681.13 | $24,136.59 | $502.85 | $23,633.74 | $603.02 | |
| 2 | Feb 14, 2025 | $555.63 | $23,681.13 | $98.28 | $23,223.78 | $23,633.74 | $502.85 | $23,130.89 | $601.13 | |
| 3 | Mar 14, 2025 | $555.63 | $23,223.78 | $96.38 | $22,764.53 | $23,130.89 | $502.85 | $22,628.04 | $599.23 | |
| 4 | Apr 14, 2025 | $555.63 | $22,764.53 | $94.47 | $22,303.37 | $22,628.04 | $502.85 | $22,125.19 | $597.32 | |
| 5 | May 14, 2025 | $555.63 | $22,303.37 | $92.56 | $21,840.30 | $22,125.19 | $502.85 | $21,622.34 | $595.41 | |
| 6 | Jun 14, 2025 | $555.63 | $21,840.30 | $90.64 | $21,375.31 | $21,622.34 | $502.85 | $21,119.49 | $593.49 | |
| 7 | Jul 14, 2025 | $555.63 | $21,375.31 | $88.71 | $20,908.39 | $21,119.49 | $502.85 | $20,616.64 | $591.56 | |
| 8 | Aug 14, 2025 | $555.63 | $20,908.39 | $86.77 | $20,439.53 | $20,616.64 | $502.84 | $20,113.80 | $589.61 | |
| 9 | Sep 14, 2025 | $555.63 | $20,439.53 | $84.82 | $19,968.72 | $20,113.80 | $502.85 | $19,610.95 | $587.67 | |
| 10 | Oct 14, 2025 | $555.63 | $19,968.72 | $82.87 | $19,495.96 | $19,610.95 | $502.84 | $19,108.11 | $585.71 | |
| 11 | Nov 14, 2025 | $555.63 | $19,495.96 | $80.91 | $19,021.24 | $19,108.11 | $502.85 | $18,605.26 | $583.76 | |
| 12 | Dec 14, 2025 | $555.63 | $19,021.24 | $78.94 | $18,544.55 | $18,605.26 | $502.84 | $18,102.42 | $581.78 | |
| 13 | Jan 14, 2026 | $555.63 | $18,544.55 | $76.96 | $18,065.88 | $18,102.42 | $502.85 | $17,599.57 | $579.81 | |
| 14 | Feb 14, 2026 | $555.63 | $18,065.88 | $74.97 | $17,585.22 | $17,599.57 | $502.84 | $17,096.73 | $577.81 | |
| 15 | Mar 14, 2026 | $555.63 | $17,585.22 | $72.98 | $17,102.57 | $17,096.73 | $502.85 | $16,593.88 | $575.83 | |
| 16 | Apr 14, 2026 | $555.63 | $17,102.57 | $70.98 | $16,617.92 | $16,593.88 | $502.84 | $16,091.04 | $573.82 | |
| 17 | May 14, 2026 | $555.63 | $16,617.92 | $68.96 | $16,131.25 | $16,091.04 | $502.85 | $15,588.19 | $571.81 | |
| 18 | Jun 14, 2026 | $555.63 | $16,131.25 | $66.94 | $15,642.56 | $15,588.19 | $502.84 | $15,085.35 | $569.78 | |
| 19 | Jul 14, 2026 | $555.63 | $15,642.56 | $64.92 | $15,151.85 | $15,085.35 | $502.85 | $14,582.50 | $567.77 | |
| 20 | Aug 14, 2026 | $555.63 | $15,151.85 | $62.88 | $14,659.10 | $14,582.50 | $502.84 | $14,079.66 | $565.72 | |
| 21 | Sep 14, 2026 | $555.63 | $14,659.10 | $60.84 | $14,164.31 | $14,079.66 | $502.85 | $13,576.81 | $563.69 | |
| 22 | Oct 14, 2026 | $555.63 | $14,164.31 | $58.78 | $13,667.46 | $13,576.81 | $502.84 | $13,073.97 | $561.62 | |
| 23 | Nov 14, 2026 | $555.63 | $13,667.46 | $56.72 | $13,168.55 | $13,073.97 | $502.85 | $12,571.12 | $559.57 | |
| 24 | Dec 14, 2026 | $555.63 | $13,168.55 | $54.65 | $12,667.57 | $12,571.12 | $502.84 | $12,068.28 | $557.49 | |
| 25 | Jan 14, 2027 | $555.63 | $12,667.57 | $52.57 | $12,164.51 | $12,068.28 | $502.85 | $11,565.43 | $555.42 | |
| 26 | Feb 14, 2027 | $555.63 | $12,164.51 | $50.48 | $11,659.36 | $11,565.43 | $502.84 | $11,062.59 | $553.32 | |
| 27 | Mar 14, 2027 | $555.63 | $11,659.36 | $48.39 | $11,152.12 | $11,062.59 | $502.85 | $10,559.74 | $551.24 | |
| 28 | Apr 14, 2027 | $555.63 | $11,152.12 | $46.28 | $10,642.77 | $10,559.74 | $502.84 | $10,056.90 | $549.12 | |
| 29 | May 14, 2027 | $555.63 | $10,642.77 | $44.17 | $10,131.31 | $10,056.90 | $502.85 | $9,554.05 | $547.02 | |
| 30 | Jun 14, 2027 | $555.63 | $10,131.31 | $42.04 | $9,617.72 | $9,554.05 | $502.84 | $9,051.21 | $544.88 | |
| 31 | Jul 14, 2027 | $555.63 | $9,617.72 | $39.91 | $9,102.00 | $9,051.21 | $502.85 | $8,548.36 | $542.76 | |
| 32 | Aug 14, 2027 | $555.63 | $9,102.00 | $37.77 | $8,584.14 | $8,548.36 | $502.84 | $8,045.52 | $540.61 | |
| 33 | Sep 14, 2027 | $555.63 | $8,584.14 | $35.62 | $8,064.13 | $8,045.52 | $502.85 | $7,542.67 | $538.47 | |
| 34 | Oct 14, 2027 | $555.63 | $8,064.13 | $33.47 | $7,541.97 | $7,542.67 | $502.84 | $7,039.83 | $536.31 | |
| 35 | Nov 14, 2027 | $555.63 | $7,541.97 | $31.30 | $7,017.64 | $7,039.83 | $502.85 | $6,536.98 | $534.15 | |
| 36 | Dec 14, 2027 | $555.63 | $7,017.64 | $29.12 | $6,491.13 | $6,536.98 | $502.84 | $6,034.14 | $531.96 | |
| 37 | Jan 14, 2028 | $555.63 | $6,491.13 | $26.94 | $5,962.44 | $6,034.14 | $502.85 | $5,531.29 | $529.79 | |
| 38 | Feb 14, 2028 | $555.63 | $5,962.44 | $24.74 | $5,431.55 | $5,531.29 | $502.84 | $5,028.45 | $527.58 | |
| 39 | Mar 14, 2028 | $555.63 | $5,431.55 | $22.54 | $4,898.46 | $5,028.45 | $502.85 | $4,525.60 | $525.39 | |
| 40 | Apr 14, 2028 | $555.63 | $4,898.46 | $20.33 | $4,363.16 | $4,525.60 | $502.84 | $4,022.76 | $523.17 | |
| 41 | May 14, 2028 | $555.63 | $4,363.16 | $18.11 | $3,825.64 | $4,022.76 | $502.85 | $3,519.91 | $520.96 | |
| 42 | Jun 14, 2028 | $555.63 | $3,825.64 | $15.88 | $3,285.89 | $3,519.91 | $502.84 | $3,017.07 | $518.72 | |
| 43 | Jul 14, 2028 | $555.63 | $3,285.89 | $13.64 | $2,743.90 | $3,017.07 | $502.85 | $2,514.22 | $516.49 | |
| 44 | Aug 14, 2028 | $555.63 | $2,743.90 | $11.39 | $2,199.66 | $2,514.22 | $502.84 | $2,011.38 | $514.23 | |
| 45 | Sep 14, 2028 | $555.63 | $2,199.66 | $9.13 | $1,653.16 | $2,011.38 | $502.85 | $1,508.53 | $511.98 | |
| 46 | Oct 14, 2028 | $555.63 | $1,653.16 | $6.86 | $1,104.39 | $1,508.53 | $502.84 | $1,005.69 | $509.70 | |
| 47 | Nov 14, 2028 | $555.63 | $1,104.39 | $4.58 | $553.34 | $1,005.69 | $502.85 | $502.84 | $507.43 | |
| 48 | Dec 14, 2028 | $555.63 | $553.34 | $2.29 | $0.00 | $502.84 | $502.84 | $0.00 | $505.13 | |
| Totals | $26,670.24 | $2,533.65 | $24,136.59 | $0.00 | $26,670.24 | |||||
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 | $100.17 | |
| Finance Lease Liability | Interest accretion | $100.17 | |
| Finance Lease Liability | Lease payment | $555.63 | |
| Cash / Accounts Payable | Lease payment | $555.63 | |
| Amortization of ROU Asset | ROU amortization | $502.85 | |
| Accumulated Amortization - Finance ROU | ROU amortization | $502.85 | |
| In balance | $1,158.65 | $1,158.65 | |