X Ltd entered into a lease agreement on the following terms:Cost of leased asset ……….. £100,000Lease term …………… 5 yearsRentals six-monthly in advance …… £12,000Anticipated residual on disposal of theassets at end of lease term ……… £10,000Lessee’s interest in residual value …….. 97%Economic life …………… 8 yearsInception date 1 January ………. 20X4Lessee’s financial year-end …… 31 DecemberImplicit rate of interest is applied half-yearly . 4.3535%Required:Show the statement of comprehensive income entries for the years ended 31 December 20X4 and 20X7 and statement of financial position extracts at those dates.View Solution:
X Ltd entered into a lease agreement on the following



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