BCI Leases

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PU76

financeActive

1FT7X2BN4REC56415 - Ford F-250 XLT 4x4 SD Super Cab 8 ft. box 164 in. WB SRW

Flagged for review: Month-1 payment bundles Enterprise "Total Initial Charges" — split into lease payment / IDC / prepayment before activation (architecture §6.4).

Lease terms

Entity
Beckenhauer Construction Leasing, LLC (BL)
Lessor
Enterprise
Asset class
Vehicle
Asset category
Vehicle
Asset ID / serial
PU 76 · 1FT7X2BN4REC56415
Commencement
Mar 6, 2024
Lease end
Feb 6, 2028
Rent commencement
Mar 6, 2024
Payment timing
Arrears · monthly
Lease term
48 base periods

Measurement inputs

Discount rate
4.435% annual (0.37% monthly)
Rate basis
Imported from ROU-01 workbook (template cell J24).
Useful life
60 months
Fair value
$54,556.08
Initial direct costs
$0.00
Prepayment
$0.00
Lease incentive
$0.00
Undiscounted payments
$62,108.53

Classification — ASC 842-10-25-2

Recorded classification: finance (manual override Classification imported from the ROU-01 workbook.)

(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
Lease term 48mo / useful life 60mo = 80% (guideline 75%).
(d) PV of payments is substantially all of fair value
PV 57916.42 / fair value 54556.08 = 106.2% (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
$57,916.42
+ Initial direct costs
$0.00
+ Prepayment
$0.00
+ Lease incentive
$0.00
= ROU asset
$57,916.42
Lease liability
$57,916.42

Initial journal entry

Posted Mar 6, 2024

AccountMemoDebitCredit
ROU Asset - Finance LeasesRecognize ROU asset at commencement$57,916.42
Finance Lease LiabilityRecognize lease liability$57,916.42
In balance$57,916.42$57,916.42

Amortization schedule

Finance lease: interest on the liability + straight-line amortization of the ROU asset.

#DatePaymentLiability beginInterestLiability endROU beginROU amort.ROU endTotal expenseNote
1Mar 6, 2024$14,514.92$57,916.42$214.05$43,615.55$57,916.42$1,206.59$56,709.83$1,420.64
2Apr 6, 2024$1,012.63$43,615.55$161.20$42,764.12$56,709.83$1,206.59$55,503.24$1,367.79
3May 6, 2024$1,012.63$42,764.12$158.05$41,909.54$55,503.24$1,206.59$54,296.65$1,364.64
4Jun 6, 2024$1,012.63$41,909.54$154.89$41,051.80$54,296.65$1,206.59$53,090.06$1,361.48
5Jul 6, 2024$1,012.63$41,051.80$151.72$40,190.89$53,090.06$1,206.59$51,883.47$1,358.31
6Aug 6, 2024$1,012.63$40,190.89$148.54$39,326.80$51,883.47$1,206.59$50,676.88$1,355.13
7Sep 6, 2024$1,012.63$39,326.80$145.35$38,459.52$50,676.88$1,206.59$49,470.29$1,351.94
8Oct 6, 2024$1,012.63$38,459.52$142.14$37,589.03$49,470.29$1,206.59$48,263.70$1,348.73
9Nov 6, 2024$1,012.63$37,589.03$138.92$36,715.32$48,263.70$1,206.59$47,057.11$1,345.51
10Dec 6, 2024$1,012.63$36,715.32$135.69$35,838.38$47,057.11$1,206.59$45,850.52$1,342.28
11Jan 6, 2025$1,012.63$35,838.38$132.45$34,958.20$45,850.52$1,206.59$44,643.93$1,339.04
12Feb 6, 2025$1,012.63$34,958.20$129.20$34,074.77$44,643.93$1,206.59$43,437.34$1,335.79
13Mar 6, 2025$1,012.63$34,074.77$125.93$33,188.07$43,437.34$1,206.59$42,230.75$1,332.52
14Apr 6, 2025$1,012.63$33,188.07$122.66$32,298.10$42,230.75$1,206.59$41,024.16$1,329.25
15May 6, 2025$1,012.63$32,298.10$119.37$31,404.84$41,024.16$1,206.59$39,817.57$1,325.96
16Jun 6, 2025$1,012.63$31,404.84$116.07$30,508.28$39,817.57$1,206.59$38,610.98$1,322.66
17Jul 6, 2025$1,012.63$30,508.28$112.75$29,608.40$38,610.98$1,206.59$37,404.39$1,319.34
18Aug 6, 2025$1,012.63$29,608.40$109.43$28,705.20$37,404.39$1,206.59$36,197.80$1,316.02
19Sep 6, 2025$1,012.63$28,705.20$106.09$27,798.66$36,197.80$1,206.59$34,991.21$1,312.68
20Oct 6, 2025$1,012.63$27,798.66$102.74$26,888.77$34,991.21$1,206.59$33,784.62$1,309.33
21Nov 6, 2025$1,012.63$26,888.77$99.38$25,975.52$33,784.62$1,206.59$32,578.03$1,305.97
22Dec 6, 2025$1,012.63$25,975.52$96.00$25,058.89$32,578.03$1,206.59$31,371.44$1,302.59
23Jan 6, 2026$1,012.63$25,058.89$92.61$24,138.87$31,371.44$1,206.59$30,164.85$1,299.20
24Feb 6, 2026$1,012.63$24,138.87$89.21$23,215.45$30,164.85$1,206.59$28,958.26$1,295.80
25Mar 6, 2026$1,012.63$23,215.45$85.80$22,288.62$28,958.26$1,206.59$27,751.67$1,292.39
26Apr 6, 2026$1,012.63$22,288.62$82.38$21,358.37$27,751.67$1,206.59$26,545.08$1,288.97
27May 6, 2026$1,012.63$21,358.37$78.94$20,424.68$26,545.08$1,206.59$25,338.49$1,285.53
28Jun 6, 2026$1,012.63$20,424.68$75.49$19,487.54$25,338.49$1,206.59$24,131.90$1,282.08
29Jul 6, 2026$1,012.63$19,487.54$72.02$18,546.93$24,131.90$1,206.60$22,925.30$1,278.62
30Aug 6, 2026$1,012.63$18,546.93$68.55$17,602.85$22,925.30$1,206.59$21,718.71$1,275.14
31Sep 6, 2026$1,012.63$17,602.85$65.06$16,655.28$21,718.71$1,206.60$20,512.11$1,271.66
32Oct 6, 2026$1,012.63$16,655.28$61.56$15,704.21$20,512.11$1,206.59$19,305.52$1,268.15
33Nov 6, 2026$1,012.63$15,704.21$58.04$14,749.62$19,305.52$1,206.60$18,098.92$1,264.64
34Dec 6, 2026$1,012.63$14,749.62$54.51$13,791.50$18,098.92$1,206.59$16,892.33$1,261.10
35Jan 6, 2027$1,012.63$13,791.50$50.97$12,829.84$16,892.33$1,206.60$15,685.73$1,257.57
36Feb 6, 2027$1,012.63$12,829.84$47.42$11,864.63$15,685.73$1,206.59$14,479.14$1,254.01
37Mar 6, 2027$1,012.63$11,864.63$43.85$10,895.85$14,479.14$1,206.60$13,272.54$1,250.45
38Apr 6, 2027$1,012.63$10,895.85$40.27$9,923.49$13,272.54$1,206.59$12,065.95$1,246.86
39May 6, 2027$1,012.63$9,923.49$36.68$8,947.54$12,065.95$1,206.60$10,859.35$1,243.28
40Jun 6, 2027$1,012.63$8,947.54$33.07$7,967.98$10,859.35$1,206.59$9,652.76$1,239.66
41Jul 6, 2027$1,012.63$7,967.98$29.45$6,984.80$9,652.76$1,206.60$8,446.16$1,236.05
42Aug 6, 2027$1,012.63$6,984.80$25.81$5,997.98$8,446.16$1,206.59$7,239.57$1,232.40
43Sep 6, 2027$1,012.63$5,997.98$22.17$5,007.52$7,239.57$1,206.60$6,032.97$1,228.77
44Oct 6, 2027$1,012.63$5,007.52$18.51$4,013.40$6,032.97$1,206.59$4,826.38$1,225.10
45Nov 6, 2027$1,012.63$4,013.40$14.83$3,015.60$4,826.38$1,206.60$3,619.78$1,221.43
46Dec 6, 2027$1,012.63$3,015.60$11.15$2,014.12$3,619.78$1,206.59$2,413.19$1,217.74
47Jan 6, 2028$1,012.63$2,014.12$7.44$1,008.93$2,413.19$1,206.60$1,206.59$1,214.04
48Feb 6, 2028$1,012.63$1,008.93$3.70$0.00$1,206.59$1,206.59$0.00$1,210.29
Totals$62,108.53$4,192.11$57,916.42$0.00$62,108.53

Recurring journal entry — period 1

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

AccountMemoDebitCredit
Interest ExpenseInterest accretion$214.05
Finance Lease LiabilityInterest accretion$214.05
Finance Lease LiabilityLease payment$14,514.92
Cash / Accounts PayableLease payment$14,514.92
Amortization of ROU AssetROU amortization$1,206.59
Accumulated Amortization - Finance ROUROU amortization$1,206.59
In balance$15,935.56$15,935.56