PU45
ExpiredPU
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
- Enterprise
- Asset class
- Vehicle
- Asset category
- Unspecified
- Asset ID / serial
- PU
- Commencement
- May 18, 2020
- Lease end
- Apr 18, 2024
- Rent commencement
- Jun 18, 2020
- Payment timing
- Arrears · monthly
- Lease term
- 48 base periods
Measurement inputs
- Discount rate
- 0.38% annual (0.032% 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
- $14,812.80
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
- $14,698.48
- + Initial direct costs
- $0.00
- + Prepayment
- $0.00
- + Lease incentive
- $0.00
- = ROU asset
- $14,698.48
- Lease liability
- $14,698.48
Initial journal entry
Posted Jun 18, 2020
| Account | Memo | Debit | Credit |
|---|---|---|---|
| ROU Asset - Operating Leases | Recognize ROU asset at commencement | $14,698.48 | |
| Operating Lease Liability | Recognize lease liability | $14,698.48 | |
| In balance | $14,698.48 | $14,698.48 | |
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 | Jun 18, 2020 | $308.60 | $14,698.48 | $4.65 | $14,394.53 | $14,698.48 | $303.95 | $14,394.53 | $308.60 | |
| 2 | Jul 18, 2020 | $308.60 | $14,394.53 | $4.56 | $14,090.49 | $14,394.53 | $304.04 | $14,090.49 | $308.60 | |
| 3 | Aug 18, 2020 | $308.60 | $14,090.49 | $4.46 | $13,786.35 | $14,090.49 | $304.14 | $13,786.35 | $308.60 | |
| 4 | Sep 18, 2020 | $308.60 | $13,786.35 | $4.37 | $13,482.12 | $13,786.35 | $304.23 | $13,482.12 | $308.60 | |
| 5 | Oct 18, 2020 | $308.60 | $13,482.12 | $4.27 | $13,177.79 | $13,482.12 | $304.33 | $13,177.79 | $308.60 | |
| 6 | Nov 18, 2020 | $308.60 | $13,177.79 | $4.17 | $12,873.36 | $13,177.79 | $304.43 | $12,873.36 | $308.60 | |
| 7 | Dec 18, 2020 | $308.60 | $12,873.36 | $4.08 | $12,568.84 | $12,873.36 | $304.52 | $12,568.84 | $308.60 | |
| 8 | Jan 18, 2021 | $308.60 | $12,568.84 | $3.98 | $12,264.22 | $12,568.84 | $304.62 | $12,264.22 | $308.60 | |
| 9 | Feb 18, 2021 | $308.60 | $12,264.22 | $3.88 | $11,959.50 | $12,264.22 | $304.72 | $11,959.50 | $308.60 | |
| 10 | Mar 18, 2021 | $308.60 | $11,959.50 | $3.79 | $11,654.69 | $11,959.50 | $304.81 | $11,654.69 | $308.60 | |
| 11 | Apr 18, 2021 | $308.60 | $11,654.69 | $3.69 | $11,349.78 | $11,654.69 | $304.91 | $11,349.78 | $308.60 | |
| 12 | May 18, 2021 | $308.60 | $11,349.78 | $3.59 | $11,044.77 | $11,349.78 | $305.01 | $11,044.77 | $308.60 | |
| 13 | Jun 18, 2021 | $308.60 | $11,044.77 | $3.50 | $10,739.67 | $11,044.77 | $305.10 | $10,739.67 | $308.60 | |
| 14 | Jul 18, 2021 | $308.60 | $10,739.67 | $3.40 | $10,434.47 | $10,739.67 | $305.20 | $10,434.47 | $308.60 | |
| 15 | Aug 18, 2021 | $308.60 | $10,434.47 | $3.30 | $10,129.17 | $10,434.47 | $305.30 | $10,129.17 | $308.60 | |
| 16 | Sep 18, 2021 | $308.60 | $10,129.17 | $3.21 | $9,823.78 | $10,129.17 | $305.39 | $9,823.78 | $308.60 | |
| 17 | Oct 18, 2021 | $308.60 | $9,823.78 | $3.11 | $9,518.29 | $9,823.78 | $305.49 | $9,518.29 | $308.60 | |
| 18 | Nov 18, 2021 | $308.60 | $9,518.29 | $3.01 | $9,212.70 | $9,518.29 | $305.59 | $9,212.70 | $308.60 | |
| 19 | Dec 18, 2021 | $308.60 | $9,212.70 | $2.92 | $8,907.02 | $9,212.70 | $305.68 | $8,907.02 | $308.60 | |
| 20 | Jan 18, 2022 | $308.60 | $8,907.02 | $2.82 | $8,601.24 | $8,907.02 | $305.78 | $8,601.24 | $308.60 | |
| 21 | Feb 18, 2022 | $308.60 | $8,601.24 | $2.72 | $8,295.36 | $8,601.24 | $305.88 | $8,295.36 | $308.60 | |
| 22 | Mar 18, 2022 | $308.60 | $8,295.36 | $2.63 | $7,989.39 | $8,295.36 | $305.97 | $7,989.39 | $308.60 | |
| 23 | Apr 18, 2022 | $308.60 | $7,989.39 | $2.53 | $7,683.32 | $7,989.39 | $306.07 | $7,683.32 | $308.60 | |
| 24 | May 18, 2022 | $308.60 | $7,683.32 | $2.43 | $7,377.15 | $7,683.32 | $306.17 | $7,377.15 | $308.60 | |
| 25 | Jun 18, 2022 | $308.60 | $7,377.15 | $2.34 | $7,070.89 | $7,377.15 | $306.26 | $7,070.89 | $308.60 | |
| 26 | Jul 18, 2022 | $308.60 | $7,070.89 | $2.24 | $6,764.53 | $7,070.89 | $306.36 | $6,764.53 | $308.60 | |
| 27 | Aug 18, 2022 | $308.60 | $6,764.53 | $2.14 | $6,458.07 | $6,764.53 | $306.46 | $6,458.07 | $308.60 | |
| 28 | Sep 18, 2022 | $308.60 | $6,458.07 | $2.05 | $6,151.52 | $6,458.07 | $306.55 | $6,151.52 | $308.60 | |
| 29 | Oct 18, 2022 | $308.60 | $6,151.52 | $1.95 | $5,844.87 | $6,151.52 | $306.65 | $5,844.87 | $308.60 | |
| 30 | Nov 18, 2022 | $308.60 | $5,844.87 | $1.85 | $5,538.12 | $5,844.87 | $306.75 | $5,538.12 | $308.60 | |
| 31 | Dec 18, 2022 | $308.60 | $5,538.12 | $1.75 | $5,231.27 | $5,538.12 | $306.85 | $5,231.27 | $308.60 | |
| 32 | Jan 18, 2023 | $308.60 | $5,231.27 | $1.66 | $4,924.33 | $5,231.27 | $306.94 | $4,924.33 | $308.60 | |
| 33 | Feb 18, 2023 | $308.60 | $4,924.33 | $1.56 | $4,617.29 | $4,924.33 | $307.04 | $4,617.29 | $308.60 | |
| 34 | Mar 18, 2023 | $308.60 | $4,617.29 | $1.46 | $4,310.15 | $4,617.29 | $307.14 | $4,310.15 | $308.60 | |
| 35 | Apr 18, 2023 | $308.60 | $4,310.15 | $1.36 | $4,002.91 | $4,310.15 | $307.24 | $4,002.91 | $308.60 | |
| 36 | May 18, 2023 | $308.60 | $4,002.91 | $1.27 | $3,695.58 | $4,002.91 | $307.33 | $3,695.58 | $308.60 | |
| 37 | Jun 18, 2023 | $308.60 | $3,695.58 | $1.17 | $3,388.15 | $3,695.58 | $307.43 | $3,388.15 | $308.60 | |
| 38 | Jul 18, 2023 | $308.60 | $3,388.15 | $1.07 | $3,080.62 | $3,388.15 | $307.53 | $3,080.62 | $308.60 | |
| 39 | Aug 18, 2023 | $308.60 | $3,080.62 | $0.98 | $2,773.00 | $3,080.62 | $307.62 | $2,773.00 | $308.60 | |
| 40 | Sep 18, 2023 | $308.60 | $2,773.00 | $0.88 | $2,465.28 | $2,773.00 | $307.72 | $2,465.28 | $308.60 | |
| 41 | Oct 18, 2023 | $308.60 | $2,465.28 | $0.78 | $2,157.46 | $2,465.28 | $307.82 | $2,157.46 | $308.60 | |
| 42 | Nov 18, 2023 | $308.60 | $2,157.46 | $0.68 | $1,849.54 | $2,157.46 | $307.92 | $1,849.54 | $308.60 | |
| 43 | Dec 18, 2023 | $308.60 | $1,849.54 | $0.59 | $1,541.53 | $1,849.54 | $308.01 | $1,541.53 | $308.60 | |
| 44 | Jan 18, 2024 | $308.60 | $1,541.53 | $0.49 | $1,233.42 | $1,541.53 | $308.11 | $1,233.42 | $308.60 | |
| 45 | Feb 18, 2024 | $308.60 | $1,233.42 | $0.39 | $925.21 | $1,233.42 | $308.21 | $925.21 | $308.60 | |
| 46 | Mar 18, 2024 | $308.60 | $925.21 | $0.29 | $616.90 | $925.21 | $308.31 | $616.90 | $308.60 | |
| 47 | Apr 18, 2024 | $308.60 | $616.90 | $0.20 | $308.50 | $616.90 | $308.40 | $308.50 | $308.60 | |
| 48 | May 18, 2024 | $308.60 | $308.50 | $0.10 | $0.00 | $308.50 | $308.50 | $0.00 | $308.60 | |
| Totals | $14,812.80 | $114.32 | $14,698.48 | $0.00 | $14,812.80 | |||||
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 | $308.60 | |
| Operating Lease Liability | Lease liability reduction | $303.95 | |
| Cash / Accounts Payable | Lease payment | $308.60 | |
| ROU Asset - Operating Leases | ROU amortization | $303.95 | |
| In balance | $612.55 | $612.55 | |