PU51
Expired1FMJK1JT2MEA18064 - Ford Expedition Max XLT 4dr 4x4
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
- Vehicle
- Asset ID / serial
- PU 51 · 1FMJK1JT2MEA18064
- Commencement
- Mar 11, 2021
- Lease end
- Feb 11, 2025
- Rent commencement
- Apr 11, 2021
- Payment timing
- Arrears · monthly
- Lease term
- 48 base periods
Measurement inputs
- Discount rate
- 0.78% annual (0.065% monthly)
- Rate basis
- Imported from ROU-01 workbook (template cell J24).
- Useful life
- Not provided
- Fair value
- $56,265.28
- Initial direct costs
- $0.00
- Prepayment
- $0.00
- Lease incentive
- $0.00
- Undiscounted payments
- $41,249.28
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
PV 40599.44 / fair value 56265.28 = 72.2% (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
- $40,599.44
- + Initial direct costs
- $0.00
- + Prepayment
- $0.00
- + Lease incentive
- $0.00
- = ROU asset
- $40,599.44
- Lease liability
- $40,599.44
Initial journal entry
Posted Apr 11, 2021
| Account | Memo | Debit | Credit |
|---|---|---|---|
| ROU Asset - Operating Leases | Recognize ROU asset at commencement | $40,599.44 | |
| Operating Lease Liability | Recognize lease liability | $40,599.44 | |
| In balance | $40,599.44 | $40,599.44 | |
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 11, 2021 | $859.36 | $40,599.44 | $26.39 | $39,766.47 | $40,599.44 | $832.97 | $39,766.47 | $859.36 | |
| 2 | May 11, 2021 | $859.36 | $39,766.47 | $25.85 | $38,932.96 | $39,766.47 | $833.51 | $38,932.96 | $859.36 | |
| 3 | Jun 11, 2021 | $859.36 | $38,932.96 | $25.31 | $38,098.91 | $38,932.96 | $834.05 | $38,098.91 | $859.36 | |
| 4 | Jul 11, 2021 | $859.36 | $38,098.91 | $24.76 | $37,264.31 | $38,098.91 | $834.60 | $37,264.31 | $859.36 | |
| 5 | Aug 11, 2021 | $859.36 | $37,264.31 | $24.22 | $36,429.17 | $37,264.31 | $835.14 | $36,429.17 | $859.36 | |
| 6 | Sep 11, 2021 | $859.36 | $36,429.17 | $23.68 | $35,593.49 | $36,429.17 | $835.68 | $35,593.49 | $859.36 | |
| 7 | Oct 11, 2021 | $859.36 | $35,593.49 | $23.14 | $34,757.27 | $35,593.49 | $836.22 | $34,757.27 | $859.36 | |
| 8 | Nov 11, 2021 | $859.36 | $34,757.27 | $22.59 | $33,920.50 | $34,757.27 | $836.77 | $33,920.50 | $859.36 | |
| 9 | Dec 11, 2021 | $859.36 | $33,920.50 | $22.05 | $33,083.19 | $33,920.50 | $837.31 | $33,083.19 | $859.36 | |
| 10 | Jan 11, 2022 | $859.36 | $33,083.19 | $21.50 | $32,245.33 | $33,083.19 | $837.86 | $32,245.33 | $859.36 | |
| 11 | Feb 11, 2022 | $859.36 | $32,245.33 | $20.96 | $31,406.93 | $32,245.33 | $838.40 | $31,406.93 | $859.36 | |
| 12 | Mar 11, 2022 | $859.36 | $31,406.93 | $20.41 | $30,567.98 | $31,406.93 | $838.95 | $30,567.98 | $859.36 | |
| 13 | Apr 11, 2022 | $859.36 | $30,567.98 | $19.87 | $29,728.49 | $30,567.98 | $839.49 | $29,728.49 | $859.36 | |
| 14 | May 11, 2022 | $859.36 | $29,728.49 | $19.32 | $28,888.45 | $29,728.49 | $840.04 | $28,888.45 | $859.36 | |
| 15 | Jun 11, 2022 | $859.36 | $28,888.45 | $18.78 | $28,047.87 | $28,888.45 | $840.58 | $28,047.87 | $859.36 | |
| 16 | Jul 11, 2022 | $859.36 | $28,047.87 | $18.23 | $27,206.74 | $28,047.87 | $841.13 | $27,206.74 | $859.36 | |
| 17 | Aug 11, 2022 | $859.36 | $27,206.74 | $17.68 | $26,365.06 | $27,206.74 | $841.68 | $26,365.06 | $859.36 | |
| 18 | Sep 11, 2022 | $859.36 | $26,365.06 | $17.14 | $25,522.84 | $26,365.06 | $842.22 | $25,522.84 | $859.36 | |
| 19 | Oct 11, 2022 | $859.36 | $25,522.84 | $16.59 | $24,680.07 | $25,522.84 | $842.77 | $24,680.07 | $859.36 | |
| 20 | Nov 11, 2022 | $859.36 | $24,680.07 | $16.04 | $23,836.75 | $24,680.07 | $843.32 | $23,836.75 | $859.36 | |
| 21 | Dec 11, 2022 | $859.36 | $23,836.75 | $15.49 | $22,992.88 | $23,836.75 | $843.87 | $22,992.88 | $859.36 | |
| 22 | Jan 11, 2023 | $859.36 | $22,992.88 | $14.95 | $22,148.47 | $22,992.88 | $844.41 | $22,148.47 | $859.36 | |
| 23 | Feb 11, 2023 | $859.36 | $22,148.47 | $14.40 | $21,303.51 | $22,148.47 | $844.96 | $21,303.51 | $859.36 | |
| 24 | Mar 11, 2023 | $859.36 | $21,303.51 | $13.85 | $20,458.00 | $21,303.51 | $845.51 | $20,458.00 | $859.36 | |
| 25 | Apr 11, 2023 | $859.36 | $20,458.00 | $13.30 | $19,611.94 | $20,458.00 | $846.06 | $19,611.94 | $859.36 | |
| 26 | May 11, 2023 | $859.36 | $19,611.94 | $12.75 | $18,765.33 | $19,611.94 | $846.61 | $18,765.33 | $859.36 | |
| 27 | Jun 11, 2023 | $859.36 | $18,765.33 | $12.20 | $17,918.17 | $18,765.33 | $847.16 | $17,918.17 | $859.36 | |
| 28 | Jul 11, 2023 | $859.36 | $17,918.17 | $11.65 | $17,070.46 | $17,918.17 | $847.71 | $17,070.46 | $859.36 | |
| 29 | Aug 11, 2023 | $859.36 | $17,070.46 | $11.10 | $16,222.20 | $17,070.46 | $848.26 | $16,222.20 | $859.36 | |
| 30 | Sep 11, 2023 | $859.36 | $16,222.20 | $10.54 | $15,373.38 | $16,222.20 | $848.82 | $15,373.38 | $859.36 | |
| 31 | Oct 11, 2023 | $859.36 | $15,373.38 | $9.99 | $14,524.01 | $15,373.38 | $849.37 | $14,524.01 | $859.36 | |
| 32 | Nov 11, 2023 | $859.36 | $14,524.01 | $9.44 | $13,674.09 | $14,524.01 | $849.92 | $13,674.09 | $859.36 | |
| 33 | Dec 11, 2023 | $859.36 | $13,674.09 | $8.89 | $12,823.62 | $13,674.09 | $850.47 | $12,823.62 | $859.36 | |
| 34 | Jan 11, 2024 | $859.36 | $12,823.62 | $8.34 | $11,972.60 | $12,823.62 | $851.02 | $11,972.60 | $859.36 | |
| 35 | Feb 11, 2024 | $859.36 | $11,972.60 | $7.78 | $11,121.02 | $11,972.60 | $851.58 | $11,121.02 | $859.36 | |
| 36 | Mar 11, 2024 | $859.36 | $11,121.02 | $7.23 | $10,268.89 | $11,121.02 | $852.13 | $10,268.89 | $859.36 | |
| 37 | Apr 11, 2024 | $859.36 | $10,268.89 | $6.67 | $9,416.20 | $10,268.89 | $852.69 | $9,416.20 | $859.36 | |
| 38 | May 11, 2024 | $859.36 | $9,416.20 | $6.12 | $8,562.96 | $9,416.20 | $853.24 | $8,562.96 | $859.36 | |
| 39 | Jun 11, 2024 | $859.36 | $8,562.96 | $5.57 | $7,709.17 | $8,562.96 | $853.79 | $7,709.17 | $859.36 | |
| 40 | Jul 11, 2024 | $859.36 | $7,709.17 | $5.01 | $6,854.82 | $7,709.17 | $854.35 | $6,854.82 | $859.36 | |
| 41 | Aug 11, 2024 | $859.36 | $6,854.82 | $4.46 | $5,999.92 | $6,854.82 | $854.90 | $5,999.92 | $859.36 | |
| 42 | Sep 11, 2024 | $859.36 | $5,999.92 | $3.90 | $5,144.46 | $5,999.92 | $855.46 | $5,144.46 | $859.36 | |
| 43 | Oct 11, 2024 | $859.36 | $5,144.46 | $3.34 | $4,288.44 | $5,144.46 | $856.02 | $4,288.44 | $859.36 | |
| 44 | Nov 11, 2024 | $859.36 | $4,288.44 | $2.79 | $3,431.87 | $4,288.44 | $856.57 | $3,431.87 | $859.36 | |
| 45 | Dec 11, 2024 | $859.36 | $3,431.87 | $2.23 | $2,574.74 | $3,431.87 | $857.13 | $2,574.74 | $859.36 | |
| 46 | Jan 11, 2025 | $859.36 | $2,574.74 | $1.67 | $1,717.05 | $2,574.74 | $857.69 | $1,717.05 | $859.36 | |
| 47 | Feb 11, 2025 | $859.36 | $1,717.05 | $1.12 | $858.81 | $1,717.05 | $858.24 | $858.81 | $859.36 | |
| 48 | Mar 11, 2025 | $859.36 | $858.81 | $0.55 | $0.00 | $858.81 | $858.81 | $0.00 | $859.36 | |
| Totals | $41,249.28 | $649.84 | $40,599.44 | $0.00 | $41,249.28 | |||||
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 | $859.36 | |
| Operating Lease Liability | Lease liability reduction | $832.97 | |
| Cash / Accounts Payable | Lease payment | $859.36 | |
| ROU Asset - Operating Leases | ROU amortization | $832.97 | |
| In balance | $1,692.33 | $1,692.33 | |