Eke Package Industry and Trade Inc
(FINANCIAL RENT) “Chemical Company”, as a tenant, on January 1, 2019 for a packaging machine ” Eke Package Industry
and Trade Inc. (leased) has signed a lease agreement. 4 years of cancellation by the tenant According to this contract,
which covers a period of time, annual rent payments of TL 122,500 each will be made at the end of each calendar year.
Officials of the Chemical Company have set the estimated economic life of the asset as 5 years. When the contract expires
The Chemical Company will be able to take over the legal ownership of that asset by making a symbolic payment of 200 TL.
To the company authorities it is highly likely that the purchase option in question is used. According to the rental
agreement, the relevant rental payments are 300,000 TL, with a 23% interest rate discount on the rental payments
specified in the contract. Rental as a result of a market survey conducted by Kimba at the beginning of the contract, the
same type of packaging machines is valid sales price is determined to be 300,000 TL.
Requested: According to the gross method for chemical management (tenant);
a) Register the required journal book for the purchase of the machine.
b) The necessary journal book and large book on the interest accrual at the end of the reporting period for 2019 and 20120 show the ledger records.
c) The necessary journal and large ledger records for rent installment payments for 2019 and 2020 your show.
d) Show the depreciation record for 2019 and 2020 for the machine. The business is equally shared for the machine in question will apply the depreciation method. The scrap value of the purchased machine has been estimated as a trivial amount.
e) The above records are to balance sheets dated 31.12.2019 and 31.12.2020 and the Profit or Loss Statements for 2019 and 2020. Show the effects.