PU47
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
- Mar 27, 2020
- Lease end
- Feb 27, 2024
- Rent commencement
- Apr 27, 2020
- Payment timing
- Arrears · monthly
- Lease term
- 48 base periods
Measurement inputs
- Discount rate
- 0.41% annual (0.034% 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
- $26,430.72
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
- $26,210.73
- + Initial direct costs
- $0.00
- + Prepayment
- $0.00
- + Lease incentive
- $0.00
- = ROU asset
- $26,210.73
- Lease liability
- $26,210.73
Initial journal entry
Posted Apr 27, 2020
| Account | Memo | Debit | Credit |
|---|---|---|---|
| ROU Asset - Operating Leases | Recognize ROU asset at commencement | $26,210.73 | |
| Operating Lease Liability | Recognize lease liability | $26,210.73 | |
| In balance | $26,210.73 | $26,210.73 | |
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 | Apr 27, 2020 | $550.64 | $26,210.73 | $8.96 | $25,669.05 | $26,210.73 | $541.68 | $25,669.05 | $550.64 | |
| 2 | May 27, 2020 | $550.64 | $25,669.05 | $8.77 | $25,127.18 | $25,669.05 | $541.87 | $25,127.18 | $550.64 | |
| 3 | Jun 27, 2020 | $550.64 | $25,127.18 | $8.59 | $24,585.13 | $25,127.18 | $542.05 | $24,585.13 | $550.64 | |
| 4 | Jul 27, 2020 | $550.64 | $24,585.13 | $8.40 | $24,042.89 | $24,585.13 | $542.24 | $24,042.89 | $550.64 | |
| 5 | Aug 27, 2020 | $550.64 | $24,042.89 | $8.21 | $23,500.46 | $24,042.89 | $542.43 | $23,500.46 | $550.64 | |
| 6 | Sep 27, 2020 | $550.64 | $23,500.46 | $8.03 | $22,957.85 | $23,500.46 | $542.61 | $22,957.85 | $550.64 | |
| 7 | Oct 27, 2020 | $550.64 | $22,957.85 | $7.84 | $22,415.05 | $22,957.85 | $542.80 | $22,415.05 | $550.64 | |
| 8 | Nov 27, 2020 | $550.64 | $22,415.05 | $7.66 | $21,872.07 | $22,415.05 | $542.98 | $21,872.07 | $550.64 | |
| 9 | Dec 27, 2020 | $550.64 | $21,872.07 | $7.47 | $21,328.90 | $21,872.07 | $543.17 | $21,328.90 | $550.64 | |
| 10 | Jan 27, 2021 | $550.64 | $21,328.90 | $7.29 | $20,785.55 | $21,328.90 | $543.35 | $20,785.55 | $550.64 | |
| 11 | Feb 27, 2021 | $550.64 | $20,785.55 | $7.10 | $20,242.01 | $20,785.55 | $543.54 | $20,242.01 | $550.64 | |
| 12 | Mar 27, 2021 | $550.64 | $20,242.01 | $6.92 | $19,698.29 | $20,242.01 | $543.72 | $19,698.29 | $550.64 | |
| 13 | Apr 27, 2021 | $550.64 | $19,698.29 | $6.73 | $19,154.38 | $19,698.29 | $543.91 | $19,154.38 | $550.64 | |
| 14 | May 27, 2021 | $550.64 | $19,154.38 | $6.54 | $18,610.28 | $19,154.38 | $544.10 | $18,610.28 | $550.64 | |
| 15 | Jun 27, 2021 | $550.64 | $18,610.28 | $6.36 | $18,066.00 | $18,610.28 | $544.28 | $18,066.00 | $550.64 | |
| 16 | Jul 27, 2021 | $550.64 | $18,066.00 | $6.17 | $17,521.53 | $18,066.00 | $544.47 | $17,521.53 | $550.64 | |
| 17 | Aug 27, 2021 | $550.64 | $17,521.53 | $5.99 | $16,976.88 | $17,521.53 | $544.65 | $16,976.88 | $550.64 | |
| 18 | Sep 27, 2021 | $550.64 | $16,976.88 | $5.80 | $16,432.04 | $16,976.88 | $544.84 | $16,432.04 | $550.64 | |
| 19 | Oct 27, 2021 | $550.64 | $16,432.04 | $5.61 | $15,887.01 | $16,432.04 | $545.03 | $15,887.01 | $550.64 | |
| 20 | Nov 27, 2021 | $550.64 | $15,887.01 | $5.43 | $15,341.80 | $15,887.01 | $545.21 | $15,341.80 | $550.64 | |
| 21 | Dec 27, 2021 | $550.64 | $15,341.80 | $5.24 | $14,796.40 | $15,341.80 | $545.40 | $14,796.40 | $550.64 | |
| 22 | Jan 27, 2022 | $550.64 | $14,796.40 | $5.06 | $14,250.82 | $14,796.40 | $545.58 | $14,250.82 | $550.64 | |
| 23 | Feb 27, 2022 | $550.64 | $14,250.82 | $4.87 | $13,705.05 | $14,250.82 | $545.77 | $13,705.05 | $550.64 | |
| 24 | Mar 27, 2022 | $550.64 | $13,705.05 | $4.68 | $13,159.09 | $13,705.05 | $545.96 | $13,159.09 | $550.64 | |
| 25 | Apr 27, 2022 | $550.64 | $13,159.09 | $4.50 | $12,612.95 | $13,159.09 | $546.14 | $12,612.95 | $550.64 | |
| 26 | May 27, 2022 | $550.64 | $12,612.95 | $4.31 | $12,066.62 | $12,612.95 | $546.33 | $12,066.62 | $550.64 | |
| 27 | Jun 27, 2022 | $550.64 | $12,066.62 | $4.12 | $11,520.10 | $12,066.62 | $546.52 | $11,520.10 | $550.64 | |
| 28 | Jul 27, 2022 | $550.64 | $11,520.10 | $3.94 | $10,973.40 | $11,520.10 | $546.70 | $10,973.40 | $550.64 | |
| 29 | Aug 27, 2022 | $550.64 | $10,973.40 | $3.75 | $10,426.51 | $10,973.40 | $546.89 | $10,426.51 | $550.64 | |
| 30 | Sep 27, 2022 | $550.64 | $10,426.51 | $3.56 | $9,879.43 | $10,426.51 | $547.08 | $9,879.43 | $550.64 | |
| 31 | Oct 27, 2022 | $550.64 | $9,879.43 | $3.38 | $9,332.17 | $9,879.43 | $547.26 | $9,332.17 | $550.64 | |
| 32 | Nov 27, 2022 | $550.64 | $9,332.17 | $3.19 | $8,784.72 | $9,332.17 | $547.45 | $8,784.72 | $550.64 | |
| 33 | Dec 27, 2022 | $550.64 | $8,784.72 | $3.00 | $8,237.08 | $8,784.72 | $547.64 | $8,237.08 | $550.64 | |
| 34 | Jan 27, 2023 | $550.64 | $8,237.08 | $2.81 | $7,689.25 | $8,237.08 | $547.83 | $7,689.25 | $550.64 | |
| 35 | Feb 27, 2023 | $550.64 | $7,689.25 | $2.63 | $7,141.24 | $7,689.25 | $548.01 | $7,141.24 | $550.64 | |
| 36 | Mar 27, 2023 | $550.64 | $7,141.24 | $2.44 | $6,593.04 | $7,141.24 | $548.20 | $6,593.04 | $550.64 | |
| 37 | Apr 27, 2023 | $550.64 | $6,593.04 | $2.25 | $6,044.65 | $6,593.04 | $548.39 | $6,044.65 | $550.64 | |
| 38 | May 27, 2023 | $550.64 | $6,044.65 | $2.07 | $5,496.08 | $6,044.65 | $548.57 | $5,496.08 | $550.64 | |
| 39 | Jun 27, 2023 | $550.64 | $5,496.08 | $1.88 | $4,947.32 | $5,496.08 | $548.76 | $4,947.32 | $550.64 | |
| 40 | Jul 27, 2023 | $550.64 | $4,947.32 | $1.69 | $4,398.37 | $4,947.32 | $548.95 | $4,398.37 | $550.64 | |
| 41 | Aug 27, 2023 | $550.64 | $4,398.37 | $1.50 | $3,849.23 | $4,398.37 | $549.14 | $3,849.23 | $550.64 | |
| 42 | Sep 27, 2023 | $550.64 | $3,849.23 | $1.32 | $3,299.91 | $3,849.23 | $549.32 | $3,299.91 | $550.64 | |
| 43 | Oct 27, 2023 | $550.64 | $3,299.91 | $1.13 | $2,750.40 | $3,299.91 | $549.51 | $2,750.40 | $550.64 | |
| 44 | Nov 27, 2023 | $550.64 | $2,750.40 | $0.94 | $2,200.70 | $2,750.40 | $549.70 | $2,200.70 | $550.64 | |
| 45 | Dec 27, 2023 | $550.64 | $2,200.70 | $0.75 | $1,650.81 | $2,200.70 | $549.89 | $1,650.81 | $550.64 | |
| 46 | Jan 27, 2024 | $550.64 | $1,650.81 | $0.56 | $1,100.73 | $1,650.81 | $550.08 | $1,100.73 | $550.64 | |
| 47 | Feb 27, 2024 | $550.64 | $1,100.73 | $0.38 | $550.47 | $1,100.73 | $550.26 | $550.47 | $550.64 | |
| 48 | Mar 27, 2024 | $550.64 | $550.47 | $0.17 | $0.00 | $550.47 | $550.47 | $0.00 | $550.64 | |
| Totals | $26,430.72 | $219.99 | $26,210.73 | $0.00 | $26,430.72 | |||||
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 | $550.64 | |
| Operating Lease Liability | Lease liability reduction | $541.68 | |
| Cash / Accounts Payable | Lease payment | $550.64 | |
| ROU Asset - Operating Leases | ROU amortization | $541.68 | |
| In balance | $1,092.32 | $1,092.32 | |