PU46
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
- $29,888.64
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
- $29,657.97
- + Initial direct costs
- $0.00
- + Prepayment
- $0.00
- + Lease incentive
- $0.00
- = ROU asset
- $29,657.97
- Lease liability
- $29,657.97
Initial journal entry
Posted Jun 18, 2020
| Account | Memo | Debit | Credit |
|---|---|---|---|
| ROU Asset - Operating Leases | Recognize ROU asset at commencement | $29,657.97 | |
| Operating Lease Liability | Recognize lease liability | $29,657.97 | |
| In balance | $29,657.97 | $29,657.97 | |
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 | $622.68 | $29,657.97 | $9.39 | $29,044.68 | $29,657.97 | $613.29 | $29,044.68 | $622.68 | |
| 2 | Jul 18, 2020 | $622.68 | $29,044.68 | $9.20 | $28,431.20 | $29,044.68 | $613.48 | $28,431.20 | $622.68 | |
| 3 | Aug 18, 2020 | $622.68 | $28,431.20 | $9.00 | $27,817.52 | $28,431.20 | $613.68 | $27,817.52 | $622.68 | |
| 4 | Sep 18, 2020 | $622.68 | $27,817.52 | $8.81 | $27,203.65 | $27,817.52 | $613.87 | $27,203.65 | $622.68 | |
| 5 | Oct 18, 2020 | $622.68 | $27,203.65 | $8.61 | $26,589.58 | $27,203.65 | $614.07 | $26,589.58 | $622.68 | |
| 6 | Nov 18, 2020 | $622.68 | $26,589.58 | $8.42 | $25,975.32 | $26,589.58 | $614.26 | $25,975.32 | $622.68 | |
| 7 | Dec 18, 2020 | $622.68 | $25,975.32 | $8.23 | $25,360.87 | $25,975.32 | $614.45 | $25,360.87 | $622.68 | |
| 8 | Jan 18, 2021 | $622.68 | $25,360.87 | $8.03 | $24,746.22 | $25,360.87 | $614.65 | $24,746.22 | $622.68 | |
| 9 | Feb 18, 2021 | $622.68 | $24,746.22 | $7.84 | $24,131.38 | $24,746.22 | $614.84 | $24,131.38 | $622.68 | |
| 10 | Mar 18, 2021 | $622.68 | $24,131.38 | $7.64 | $23,516.34 | $24,131.38 | $615.04 | $23,516.34 | $622.68 | |
| 11 | Apr 18, 2021 | $622.68 | $23,516.34 | $7.45 | $22,901.11 | $23,516.34 | $615.23 | $22,901.11 | $622.68 | |
| 12 | May 18, 2021 | $622.68 | $22,901.11 | $7.25 | $22,285.68 | $22,901.11 | $615.43 | $22,285.68 | $622.68 | |
| 13 | Jun 18, 2021 | $622.68 | $22,285.68 | $7.06 | $21,670.06 | $22,285.68 | $615.62 | $21,670.06 | $622.68 | |
| 14 | Jul 18, 2021 | $622.68 | $21,670.06 | $6.86 | $21,054.24 | $21,670.06 | $615.82 | $21,054.24 | $622.68 | |
| 15 | Aug 18, 2021 | $622.68 | $21,054.24 | $6.67 | $20,438.23 | $21,054.24 | $616.01 | $20,438.23 | $622.68 | |
| 16 | Sep 18, 2021 | $622.68 | $20,438.23 | $6.47 | $19,822.02 | $20,438.23 | $616.21 | $19,822.02 | $622.68 | |
| 17 | Oct 18, 2021 | $622.68 | $19,822.02 | $6.28 | $19,205.62 | $19,822.02 | $616.40 | $19,205.62 | $622.68 | |
| 18 | Nov 18, 2021 | $622.68 | $19,205.62 | $6.08 | $18,589.02 | $19,205.62 | $616.60 | $18,589.02 | $622.68 | |
| 19 | Dec 18, 2021 | $622.68 | $18,589.02 | $5.89 | $17,972.23 | $18,589.02 | $616.79 | $17,972.23 | $622.68 | |
| 20 | Jan 18, 2022 | $622.68 | $17,972.23 | $5.69 | $17,355.24 | $17,972.23 | $616.99 | $17,355.24 | $622.68 | |
| 21 | Feb 18, 2022 | $622.68 | $17,355.24 | $5.50 | $16,738.06 | $17,355.24 | $617.18 | $16,738.06 | $622.68 | |
| 22 | Mar 18, 2022 | $622.68 | $16,738.06 | $5.30 | $16,120.68 | $16,738.06 | $617.38 | $16,120.68 | $622.68 | |
| 23 | Apr 18, 2022 | $622.68 | $16,120.68 | $5.10 | $15,503.10 | $16,120.68 | $617.58 | $15,503.10 | $622.68 | |
| 24 | May 18, 2022 | $622.68 | $15,503.10 | $4.91 | $14,885.33 | $15,503.10 | $617.77 | $14,885.33 | $622.68 | |
| 25 | Jun 18, 2022 | $622.68 | $14,885.33 | $4.71 | $14,267.36 | $14,885.33 | $617.97 | $14,267.36 | $622.68 | |
| 26 | Jul 18, 2022 | $622.68 | $14,267.36 | $4.52 | $13,649.20 | $14,267.36 | $618.16 | $13,649.20 | $622.68 | |
| 27 | Aug 18, 2022 | $622.68 | $13,649.20 | $4.32 | $13,030.84 | $13,649.20 | $618.36 | $13,030.84 | $622.68 | |
| 28 | Sep 18, 2022 | $622.68 | $13,030.84 | $4.13 | $12,412.29 | $13,030.84 | $618.55 | $12,412.29 | $622.68 | |
| 29 | Oct 18, 2022 | $622.68 | $12,412.29 | $3.93 | $11,793.54 | $12,412.29 | $618.75 | $11,793.54 | $622.68 | |
| 30 | Nov 18, 2022 | $622.68 | $11,793.54 | $3.73 | $11,174.59 | $11,793.54 | $618.95 | $11,174.59 | $622.68 | |
| 31 | Dec 18, 2022 | $622.68 | $11,174.59 | $3.54 | $10,555.45 | $11,174.59 | $619.14 | $10,555.45 | $622.68 | |
| 32 | Jan 18, 2023 | $622.68 | $10,555.45 | $3.34 | $9,936.11 | $10,555.45 | $619.34 | $9,936.11 | $622.68 | |
| 33 | Feb 18, 2023 | $622.68 | $9,936.11 | $3.15 | $9,316.58 | $9,936.11 | $619.53 | $9,316.58 | $622.68 | |
| 34 | Mar 18, 2023 | $622.68 | $9,316.58 | $2.95 | $8,696.85 | $9,316.58 | $619.73 | $8,696.85 | $622.68 | |
| 35 | Apr 18, 2023 | $622.68 | $8,696.85 | $2.75 | $8,076.92 | $8,696.85 | $619.93 | $8,076.92 | $622.68 | |
| 36 | May 18, 2023 | $622.68 | $8,076.92 | $2.56 | $7,456.80 | $8,076.92 | $620.12 | $7,456.80 | $622.68 | |
| 37 | Jun 18, 2023 | $622.68 | $7,456.80 | $2.36 | $6,836.48 | $7,456.80 | $620.32 | $6,836.48 | $622.68 | |
| 38 | Jul 18, 2023 | $622.68 | $6,836.48 | $2.16 | $6,215.96 | $6,836.48 | $620.52 | $6,215.96 | $622.68 | |
| 39 | Aug 18, 2023 | $622.68 | $6,215.96 | $1.97 | $5,595.25 | $6,215.96 | $620.71 | $5,595.25 | $622.68 | |
| 40 | Sep 18, 2023 | $622.68 | $5,595.25 | $1.77 | $4,974.34 | $5,595.25 | $620.91 | $4,974.34 | $622.68 | |
| 41 | Oct 18, 2023 | $622.68 | $4,974.34 | $1.58 | $4,353.24 | $4,974.34 | $621.10 | $4,353.24 | $622.68 | |
| 42 | Nov 18, 2023 | $622.68 | $4,353.24 | $1.38 | $3,731.94 | $4,353.24 | $621.30 | $3,731.94 | $622.68 | |
| 43 | Dec 18, 2023 | $622.68 | $3,731.94 | $1.18 | $3,110.44 | $3,731.94 | $621.50 | $3,110.44 | $622.68 | |
| 44 | Jan 18, 2024 | $622.68 | $3,110.44 | $0.98 | $2,488.74 | $3,110.44 | $621.70 | $2,488.74 | $622.68 | |
| 45 | Feb 18, 2024 | $622.68 | $2,488.74 | $0.79 | $1,866.85 | $2,488.74 | $621.89 | $1,866.85 | $622.68 | |
| 46 | Mar 18, 2024 | $622.68 | $1,866.85 | $0.59 | $1,244.76 | $1,866.85 | $622.09 | $1,244.76 | $622.68 | |
| 47 | Apr 18, 2024 | $622.68 | $1,244.76 | $0.39 | $622.47 | $1,244.76 | $622.29 | $622.47 | $622.68 | |
| 48 | May 18, 2024 | $622.68 | $622.47 | $0.21 | $0.00 | $622.47 | $622.47 | $0.00 | $622.68 | |
| Totals | $29,888.64 | $230.67 | $29,657.97 | $0.00 | $29,888.64 | |||||
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 | $622.68 | |
| Operating Lease Liability | Lease liability reduction | $613.29 | |
| Cash / Accounts Payable | Lease payment | $622.68 | |
| ROU Asset - Operating Leases | ROU amortization | $613.29 | |
| In balance | $1,235.97 | $1,235.97 | |