BCI Leases

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PU61

operatingActive

1FTFX1E53NKF07597 - Ford F-150 XL 4x4 SuperCab 6.5 ft. box 145 in. WB

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 61 · 1FTFX1E53NKF07597
Commencement
Nov 1, 2022
Lease end
Oct 1, 2026
Rent commencement
Dec 1, 2022
Payment timing
Arrears · monthly
Lease term
48 base periods

Measurement inputs

Discount rate
4.27% annual (0.356% monthly)
Rate basis
Imported from ROU-01 workbook (template cell J24).
Useful life
Not provided
Fair value
$44,451.13
Initial direct costs
$0.00
Prepayment
$0.00
Lease incentive
$0.00
Undiscounted payments
$39,403.68

Classification — ASC 842-10-25-2

Recorded classification: operating (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 36163.31 / fair value 44451.13 = 81.4% (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
$36,163.31
+ Initial direct costs
$0.00
+ Prepayment
$0.00
+ Lease incentive
$0.00
= ROU asset
$36,163.31
Lease liability
$36,163.31

Initial journal entry

Posted Dec 1, 2022

AccountMemoDebitCredit
ROU Asset - Operating LeasesRecognize ROU asset at commencement$36,163.31
Operating Lease LiabilityRecognize lease liability$36,163.31
In balance$36,163.31$36,163.31

Amortization schedule

Operating lease: single straight-line lease cost; ROU amortization is the residual.

#DatePaymentLiability beginInterestLiability endROU beginROU amort.ROU endLease expenseNote
1Dec 1, 2022$820.91$36,163.31$128.68$35,471.08$36,163.31$692.23$35,471.08$820.91
2Jan 1, 2023$820.91$35,471.08$126.22$34,776.39$35,471.08$694.69$34,776.39$820.91
3Feb 1, 2023$820.91$34,776.39$123.75$34,079.23$34,776.39$697.16$34,079.23$820.91
4Mar 1, 2023$820.91$34,079.23$121.27$33,379.59$34,079.23$699.64$33,379.59$820.91
5Apr 1, 2023$820.91$33,379.59$118.78$32,677.46$33,379.59$702.13$32,677.46$820.91
6May 1, 2023$820.91$32,677.46$116.28$31,972.83$32,677.46$704.63$31,972.83$820.91
7Jun 1, 2023$820.91$31,972.83$113.77$31,265.69$31,972.83$707.14$31,265.69$820.91
8Jul 1, 2023$820.91$31,265.69$111.25$30,556.03$31,265.69$709.66$30,556.03$820.91
9Aug 1, 2023$820.91$30,556.03$108.73$29,843.85$30,556.03$712.18$29,843.85$820.91
10Sep 1, 2023$820.91$29,843.85$106.19$29,129.13$29,843.85$714.72$29,129.13$820.91
11Oct 1, 2023$820.91$29,129.13$103.65$28,411.87$29,129.13$717.26$28,411.87$820.91
12Nov 1, 2023$820.91$28,411.87$101.10$27,692.06$28,411.87$719.81$27,692.06$820.91
13Dec 1, 2023$820.91$27,692.06$98.54$26,969.69$27,692.06$722.37$26,969.69$820.91
14Jan 1, 2024$820.91$26,969.69$95.97$26,244.75$26,969.69$724.94$26,244.75$820.91
15Feb 1, 2024$820.91$26,244.75$93.39$25,517.23$26,244.75$727.52$25,517.23$820.91
16Mar 1, 2024$820.91$25,517.23$90.80$24,787.12$25,517.23$730.11$24,787.12$820.91
17Apr 1, 2024$820.91$24,787.12$88.20$24,054.41$24,787.12$732.71$24,054.41$820.91
18May 1, 2024$820.91$24,054.41$85.59$23,319.09$24,054.41$735.32$23,319.09$820.91
19Jun 1, 2024$820.91$23,319.09$82.98$22,581.16$23,319.09$737.93$22,581.16$820.91
20Jul 1, 2024$820.91$22,581.16$80.35$21,840.60$22,581.16$740.56$21,840.60$820.91
21Aug 1, 2024$820.91$21,840.60$77.72$21,097.41$21,840.60$743.19$21,097.41$820.91
22Sep 1, 2024$820.91$21,097.41$75.07$20,351.57$21,097.41$745.84$20,351.57$820.91
23Oct 1, 2024$820.91$20,351.57$72.42$19,603.08$20,351.57$748.49$19,603.08$820.91
24Nov 1, 2024$820.91$19,603.08$69.75$18,851.92$19,603.08$751.16$18,851.92$820.91
25Dec 1, 2024$820.91$18,851.92$67.08$18,098.09$18,851.92$753.83$18,098.09$820.91
26Jan 1, 2025$820.91$18,098.09$64.40$17,341.58$18,098.09$756.51$17,341.58$820.91
27Feb 1, 2025$820.91$17,341.58$61.71$16,582.38$17,341.58$759.20$16,582.38$820.91
28Mar 1, 2025$820.91$16,582.38$59.01$15,820.48$16,582.38$761.90$15,820.48$820.91
29Apr 1, 2025$820.91$15,820.48$56.29$15,055.86$15,820.48$764.62$15,055.86$820.91
30May 1, 2025$820.91$15,055.86$53.57$14,288.52$15,055.86$767.34$14,288.52$820.91
31Jun 1, 2025$820.91$14,288.52$50.84$13,518.45$14,288.52$770.07$13,518.45$820.91
32Jul 1, 2025$820.91$13,518.45$48.10$12,745.64$13,518.45$772.81$12,745.64$820.91
33Aug 1, 2025$820.91$12,745.64$45.35$11,970.08$12,745.64$775.56$11,970.08$820.91
34Sep 1, 2025$820.91$11,970.08$42.59$11,191.76$11,970.08$778.32$11,191.76$820.91
35Oct 1, 2025$820.91$11,191.76$39.82$10,410.67$11,191.76$781.09$10,410.67$820.91
36Nov 1, 2025$820.91$10,410.67$37.04$9,626.80$10,410.67$783.87$9,626.80$820.91
37Dec 1, 2025$820.91$9,626.80$34.26$8,840.15$9,626.80$786.65$8,840.15$820.91
38Jan 1, 2026$820.91$8,840.15$31.46$8,050.70$8,840.15$789.45$8,050.70$820.91
39Feb 1, 2026$820.91$8,050.70$28.65$7,258.44$8,050.70$792.26$7,258.44$820.91
40Mar 1, 2026$820.91$7,258.44$25.83$6,463.36$7,258.44$795.08$6,463.36$820.91
41Apr 1, 2026$820.91$6,463.36$23.00$5,665.45$6,463.36$797.91$5,665.45$820.91
42May 1, 2026$820.91$5,665.45$20.16$4,864.70$5,665.45$800.75$4,864.70$820.91
43Jun 1, 2026$820.91$4,864.70$17.31$4,061.10$4,864.70$803.60$4,061.10$820.91
44Jul 1, 2026$820.91$4,061.10$14.45$3,254.64$4,061.10$806.46$3,254.64$820.91
45Aug 1, 2026$820.91$3,254.64$11.58$2,445.31$3,254.64$809.33$2,445.31$820.91
46Sep 1, 2026$820.91$2,445.31$8.70$1,633.10$2,445.31$812.21$1,633.10$820.91
47Oct 1, 2026$820.91$1,633.10$5.81$818.00$1,633.10$815.10$818.00$820.91
48Nov 1, 2026$820.91$818.00$2.91$0.00$818.00$818.00$0.00$820.91
Totals$39,403.68$3,240.37$36,163.31$0.00$39,403.68

Recurring journal entry — period 1

Representative entry; one entry per period follows the schedule. Use “Export journal entries” for the full set.

AccountMemoDebitCredit
Operating Lease ExpenseStraight-line lease cost$820.91
Operating Lease LiabilityLease liability reduction$692.23
Cash / Accounts PayableLease payment$820.91
ROU Asset - Operating LeasesROU amortization$692.23
In balance$1,513.14$1,513.14