Excel Lease Agreement

Document Sample
Excel Lease Agreement Powered By Docstoc
					Instructions for the Microsoft Excel Templates

Be advised, the worksheet and workbooks are not protected.

Extensive detail and information is contained within the manual.

Striking the "F1" key or following the path "Windows>Excel Help" will invoke the Office Assistant and bring up one
of several help menus.

You should enter your name, course ID, and date name into the cells at the top of the page.

Each page contains a page footer with a Page # of Page ## as well as time and date to assist in assembly of
multiple pages.

Each worksheet contains the identification of the problem or exercise.

All formatting should have been accomplished to provide satisfactory presentation. See the text for additional
assistance in formatting.

There should be no need to insert columns or rows into the workbooks.

If more than one page is required by the problem, the page breaks are preset.

In general, the yellow highlighted cells are the cells which work and effort should be presented.

Place the proper account title in the cell where the word "Account title" appears on the template.

Place the value in the cell where the word "Value" or "Amount" appears on the template. A formula may be placed
in some of these cells.

Write a formula into cells where the word "Formula" appears. In these cells, an amount calculated can be
entered. An amount can be placed in these cells.

Place the explanation for the entry in the cell where the word "Text Explanation" appears on the template.

Insert the account number where "Acct Nbr" appears on the template during posting.

Insert the journal reference where "JOURN #" appears on the template during posting.

Insert the title in the cell where "TITLE" appears on the template.

The print area is defined to fit onto 8 1/2" X 11" sheets in portrait or landscape mode as required.

The gray filled cells define the perimeter of the problem and the print area.

The problem is formatted for whole dollars with comma separations (no cents) except where required.

The display may have "Freeze Pane" invoked so column titles remain visible during data entry.

Negative values may be shown as ($400) or -$400.




                                  Instructions, Page 1 of 4, 11/13/2010, 6:12 PM
Consider using "Split" panes to assist in copy and paste of data.

Much of the exercises and problems can have data entered by the "look to" or "=A34" type formula where cell
A34 contains the data to be entered. This precludes typing and data entry errors.




                                 Instructions, Page 2 of 4, 11/13/2010, 6:12 PM
Name:
Exercise: E21-3, Lessee Entries; Capital Lease with Executory
                 Costs and Unguaranteed Residual Value
Course:
Date:
Assume that on January 1, 2011, Kimberly-Clark Corp. signs a 10-year noncancelable lease agreement to
lease a storage building from Trevino Storage Company. The following information pertains to this lease
agreement:
1. The agreement requires equal rental payments of               $90,000     beginning on January 1, 2011.
2. The fair value of the building on January 1, 2011, is        $550,000
3. The building has an estimated economic life of 12 years, with an unguaranteed residual value of
    $10,000        Kimberly-Clark depreciates similar buildings on the straight-line method.
4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor.
5. Kimberly-Clark's incremental borrowing rate is 12% per year. The lessor's implicit rate is not known
   by Kimberly-Clark.
6. The yearly rental payment includes             $3,088.14 of executory costs related to taxes on the
property.

Instructions:
Prepare the journal entries on the lessee’s books to reflect the signing of the lease agreement and to
record the payments and expenses related to this lease for the years 2011 and 2012. Kimberly-Clark’s
corporate year end is December 31.

                 Capitalized amount of the lease:
                 Yearly payment                                  Amount
                 Executory costs                                 Amount
                 Minimum annual lease payment                    Formula

                 Use the Excel Present Value (=PV) formula to determine the present value.

   Jan 1, 11     Account Title                                                  Amount
                  Account Title                                                                   Amount

   Jan 1, 11     Account Title                                                  Amount
                 Account Title                                                  Amount
                  Account Title                                                                   Amount

  Dec 31, 11     Account Title                                                  Amount
                  Account Title                                                                   Amount

  Dec 31, 11     Account Title                                                  Amount
                  Account Title                                                                   Amount

   Jan 1, 12     Account Title                                                  Amount
                 Account Title                                                  Amount
                 Account Title                                                  Amount
                  Account Title                                                                   Amount

  Dec 31, 12     Account Title                                                  Amount


                                 Exercise 21-3, Page 3 of 4, 11/13/2010, 6:12 PM
  Dec 31, 12
                Account Title                                                      Amount

  Dec 31, 12   Account Title                                              Amount
                Account Title                                                      Amount

Schedule 1:                KIMBERLY-CLARK CORPORATION (Lessee)
                                   Lease Amortization Schedule
                              Annual Payment Less Executory Costs
                                Annual
                                                         Reduction
                               Payment      Interest
                                                             of     Lease
                   Date          Less        (12%)
                                                           Lease    Liability
                              Executory    on Liability
                                                          Liability
                                Costs
                 Jan 1, 11                                             Amount
                 Jan 1, 11        Formula      Amount       Formula   Formula
                 Jan 1, 12        Amount       Formula      Formula   Formula
                 Jan 1, 13        Amount       Formula      Formula   Formula




                            Exercise 21-3, Page 4 of 4, 11/13/2010, 6:12 PM

				
DOCUMENT INFO
Description: Excel Lease Agreement document sample