BCI Leases

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PU80

financeActive

1FTEX3LPXRKD38731 - Ford F-150 XLT 4x4 SuperCab 6.5 ft. box 145 in. WB

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 80 · 1FTEX3LPXRKD38731
Commencement
May 3, 2024
Lease end
Apr 3, 2028
Rent commencement
May 3, 2024
Payment timing
Arrears · monthly
Lease term
48 base periods

Measurement inputs

Discount rate
4.72% annual (0.393% monthly)
Rate basis
Imported from ROU-01 workbook (template cell J24).
Useful life
60 months
Fair value
$49,609.88
Initial direct costs
$0.00
Prepayment
$0.00
Lease incentive
$0.00
Undiscounted payments
$56,585.50

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 52560.7 / fair value 49609.88 = 105.9% (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
$52,560.70
+ Initial direct costs
$0.00
+ Prepayment
$0.00
+ Lease incentive
$0.00
= ROU asset
$52,560.70
Lease liability
$52,560.70

Initial journal entry

Posted May 3, 2024

AccountMemoDebitCredit
ROU Asset - Finance LeasesRecognize ROU asset at commencement$52,560.70
Finance Lease LiabilityRecognize lease liability$52,560.70
In balance$52,560.70$52,560.70

Amortization schedule

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

#DatePaymentLiability beginInterestLiability endROU beginROU amort.ROU endTotal expenseNote
1May 3, 2024$13,502.95$52,560.70$206.74$39,264.49$52,560.70$1,095.01$51,465.69$1,301.75
2Jun 3, 2024$916.65$39,264.49$154.44$38,502.28$51,465.69$1,095.01$50,370.68$1,249.45
3Jul 3, 2024$916.65$38,502.28$151.44$37,737.07$50,370.68$1,095.01$49,275.67$1,246.45
4Aug 3, 2024$916.65$37,737.07$148.43$36,968.85$49,275.67$1,095.01$48,180.66$1,243.44
5Sep 3, 2024$916.65$36,968.85$145.41$36,197.61$48,180.66$1,095.02$47,085.64$1,240.43
6Oct 3, 2024$916.65$36,197.61$142.38$35,423.34$47,085.64$1,095.01$45,990.63$1,237.39
7Nov 3, 2024$916.65$35,423.34$139.33$34,646.02$45,990.63$1,095.02$44,895.61$1,234.35
8Dec 3, 2024$916.65$34,646.02$136.27$33,865.64$44,895.61$1,095.01$43,800.60$1,231.28
9Jan 3, 2025$916.65$33,865.64$133.20$33,082.19$43,800.60$1,095.02$42,705.58$1,228.22
10Feb 3, 2025$916.65$33,082.19$130.12$32,295.66$42,705.58$1,095.01$41,610.57$1,225.13
11Mar 3, 2025$916.65$32,295.66$127.03$31,506.04$41,610.57$1,095.02$40,515.55$1,222.05
12Apr 3, 2025$916.65$31,506.04$123.92$30,713.31$40,515.55$1,095.01$39,420.54$1,218.93
13May 3, 2025$916.65$30,713.31$120.81$29,917.47$39,420.54$1,095.02$38,325.52$1,215.83
14Jun 3, 2025$916.65$29,917.47$117.68$29,118.50$38,325.52$1,095.01$37,230.51$1,212.69
15Jul 3, 2025$916.65$29,118.50$114.53$28,316.38$37,230.51$1,095.02$36,135.49$1,209.55
16Aug 3, 2025$916.65$28,316.38$111.38$27,511.11$36,135.49$1,095.01$35,040.48$1,206.39
17Sep 3, 2025$916.65$27,511.11$108.21$26,702.67$35,040.48$1,095.02$33,945.46$1,203.23
18Oct 3, 2025$916.65$26,702.67$105.03$25,891.05$33,945.46$1,095.01$32,850.45$1,200.04
19Nov 3, 2025$916.65$25,891.05$101.84$25,076.24$32,850.45$1,095.02$31,755.43$1,196.86
20Dec 3, 2025$916.65$25,076.24$98.63$24,258.22$31,755.43$1,095.01$30,660.42$1,193.64
21Jan 3, 2026$916.65$24,258.22$95.42$23,436.99$30,660.42$1,095.02$29,565.40$1,190.44
22Feb 3, 2026$916.65$23,436.99$92.19$22,612.53$29,565.40$1,095.01$28,470.39$1,187.20
23Mar 3, 2026$916.65$22,612.53$88.94$21,784.82$28,470.39$1,095.02$27,375.37$1,183.96
24Apr 3, 2026$916.65$21,784.82$85.69$20,953.86$27,375.37$1,095.01$26,280.36$1,180.70
25May 3, 2026$916.65$20,953.86$82.42$20,119.63$26,280.36$1,095.02$25,185.34$1,177.44
26Jun 3, 2026$916.65$20,119.63$79.14$19,282.12$25,185.34$1,095.01$24,090.33$1,174.15
27Jul 3, 2026$916.65$19,282.12$75.84$18,441.31$24,090.33$1,095.02$22,995.31$1,170.86
28Aug 3, 2026$916.65$18,441.31$72.54$17,597.20$22,995.31$1,095.01$21,900.30$1,167.55
29Sep 3, 2026$916.65$17,597.20$69.22$16,749.77$21,900.30$1,095.02$20,805.28$1,164.24
30Oct 3, 2026$916.65$16,749.77$65.88$15,899.00$20,805.28$1,095.01$19,710.27$1,160.89
31Nov 3, 2026$916.65$15,899.00$62.54$15,044.89$19,710.27$1,095.02$18,615.25$1,157.56
32Dec 3, 2026$916.65$15,044.89$59.18$14,187.42$18,615.25$1,095.01$17,520.24$1,154.19
33Jan 3, 2027$916.65$14,187.42$55.80$13,326.57$17,520.24$1,095.02$16,425.22$1,150.82
34Feb 3, 2027$916.65$13,326.57$52.42$12,462.34$16,425.22$1,095.01$15,330.21$1,147.43
35Mar 3, 2027$916.65$12,462.34$49.02$11,594.71$15,330.21$1,095.02$14,235.19$1,144.04
36Apr 3, 2027$916.65$11,594.71$45.61$10,723.67$14,235.19$1,095.01$13,140.18$1,140.62
37May 3, 2027$916.65$10,723.67$42.18$9,849.20$13,140.18$1,095.02$12,045.16$1,137.20
38Jun 3, 2027$916.65$9,849.20$38.74$8,971.29$12,045.16$1,095.01$10,950.15$1,133.75
39Jul 3, 2027$916.65$8,971.29$35.29$8,089.93$10,950.15$1,095.02$9,855.13$1,130.31
40Aug 3, 2027$916.65$8,089.93$31.82$7,205.10$9,855.13$1,095.01$8,760.12$1,126.83
41Sep 3, 2027$916.65$7,205.10$28.34$6,316.79$8,760.12$1,095.02$7,665.10$1,123.36
42Oct 3, 2027$916.65$6,316.79$24.85$5,424.99$7,665.10$1,095.01$6,570.09$1,119.86
43Nov 3, 2027$916.65$5,424.99$21.34$4,529.68$6,570.09$1,095.02$5,475.07$1,116.36
44Dec 3, 2027$916.65$4,529.68$17.82$3,630.85$5,475.07$1,095.01$4,380.06$1,112.83
45Jan 3, 2028$916.65$3,630.85$14.28$2,728.48$4,380.06$1,095.02$3,285.04$1,109.30
46Feb 3, 2028$916.65$2,728.48$10.73$1,822.56$3,285.04$1,095.01$2,190.03$1,105.74
47Mar 3, 2028$916.65$1,822.56$7.17$913.08$2,190.03$1,095.02$1,095.01$1,102.19
48Apr 3, 2028$916.65$913.08$3.57$0.00$1,095.01$1,095.01$0.00$1,098.58
Totals$56,585.50$4,024.80$52,560.70$0.00$56,585.50

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$206.74
Finance Lease LiabilityInterest accretion$206.74
Finance Lease LiabilityLease payment$13,502.95
Cash / Accounts PayableLease payment$13,502.95
Amortization of ROU AssetROU amortization$1,095.01
Accumulated Amortization - Finance ROUROU amortization$1,095.01
In balance$14,804.70$14,804.70