$16,500.

00 Fair Value
8.0% Interest Rate
48 Term in Months
$690.00 Lease Payment per Month
$287.19 Executory Costs (Maintenance Contract)
07/01/06 Lease Start Date
Lease
Fair Value/PF
Payment
of Min Lease
Date
Payments
07/01/06
$16,500.00
16,207.19
15,912.43
15,615.70
15,317.00
15,016.30
14,713.60
14,408.88
14,102.13
13,793.33
13,482.48
13,169.55
07/01/07
12,854.54
12,537.42
12,218.20
11,896.84
11,573.34
11,247.69
10,919.86
10,589.85
10,257.64
9,923.22
9,586.56
9,247.66
07/01/08
8,906.50
8,563.07
8,217.35
7,869.32
7,518.97
7,166.29
6,811.25
6,453.85
6,094.07
5,731.88
5,367.29
5,000.26
07/01/09
4,630.78
4,258.85
3,884.43
3,507.51
3,128.09
2,746.13
2,361.63
1,974.56
1,584.92
1,192.67
797.81
400.32
Total

Total
Lease
Payment
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00

Executory
Costs
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19

Net
Lease
Payment
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.99

Interest
110.00
108.05
106.08
104.10
102.11
100.11
98.09
96.06
94.01
91.96
89.88
87.80
85.70
83.58
81.45
79.31
77.16
74.98
72.80
70.60
68.38
66.15
63.91
61.65
59.38
57.09
54.78
52.46
50.13
47.78
45.41
43.03
40.63
38.21
35.78
33.34
30.87
28.39
25.90
23.38
20.85
18.31
15.74
13.16
10.57
7.95
5.32
2.67

Principal
292.81
294.76
296.73
298.71
300.70
302.70
304.72
306.75
308.80
310.85
312.93
315.01
317.11
319.23
321.36
323.50
325.65
327.83
330.01
332.21
334.43
336.66
338.90
341.16
343.43
345.72
348.03
350.35
352.68
355.03
357.40
359.78
362.18
364.60
367.03
369.47
371.94
374.42
376.91
379.43
381.96
384.50
387.07
389.65
392.24
394.86
397.49
400.32

33,120.00

13,785.12

19,335.06

2,835.06

16,500.00

Fair Value/PF
of Min Lease
Payments
16,207.19
15,912.43
15,615.70
15,317.00
15,016.30
14,713.60
14,408.88
14,102.13
13,793.33
13,482.48
13,169.55
12,854.54
12,537.42
12,218.20
11,896.84
11,573.34
11,247.69
10,919.86
10,589.85
10,257.64
9,923.22
9,586.56
9,247.66
8,906.50
8,563.07
8,217.35
7,869.32
7,518.97
7,166.29
6,811.25
6,453.85
6,094.07
5,731.88
5,367.29
5,000.26
4,630.78
4,258.85
3,884.43
3,507.51
3,128.09
2,746.13
2,361.63
1,974.56
1,584.92
1,192.67
797.81
400.32
0.00

230349181.xls.ms_office
General Accounting

The following entries are made if the capital lease is recorded in a non-proprietary fund.
Non-proprietary funds include all funds except auxiliary enterprises and service departments

(3)

(1)

(2)

(4)

(5)

(6)

Budgeted Operations - Fund Type 11

40111 - Equipment Lease Purchase
292.81 (3)
A0901 - Cash on HandInterfund
23510 - Contract Maint/Repair
287.19
28810 - Interest Exp
110.00

A8011 - Equipment

Investment in Plant - FT87

16,500.00
(1)
E1001 - NIP Change in
Fixed Assets

E1001 - NIP Change in Fixed Assets

80511 - Depreciation Exp - Equip

B2102 - Capital Lease Payable

A8511 - Acc Dep - Equipment

690.00

16,500.00

16,500.00
(2)

B2106 - Capital Lease

Payable

(4)

A8511 - Acc Dep Equipment

(5)

E1001 - NIP Change in

Fixed Assets

(6)

A8011 - Equipment

16,500.00

196.43
196.43

3,645.46
3,645.46

16,500.00
16,500.00

Amounts (for
illustrative
purposes only)

Example
(1)
(2)
(3)
(4)
(5)
(6)

Capitalize Asset in Fixed Assets at the present value of the minimum lease payments or the fair value of
the leased property, which ever is less.
Reclassify the equity (recorded in Banner Fixed Assets when capitalizing the lease) to a capital lease
liability
Make monthly lease payments of principal, interest and executory costs
Record depreciation by running monthly depreciation process in Banner Fixed Assets
Prepare a JV to record the year end adjustment to Capital Lease Payable for payments made during the
year
Remove asset at lease end when institution does not retain ownership of asset

Printed: 5/25/2014, 4:19 AM

16,500.00
16,500.00
690.00
196.43
3,645.46
16,500.00

Page 2 of 3

230349181.xls.ms_office
General Accounting

The following entries are made if the capital lease is recorded in a proprietary fund.
Proprietary funds pertain to Auxiliary Enterprises (Fund type 2x) and Service Departments (Fund Type 13).

(1)

(2)

A8011 - Equipment

Auxiliary Enterprise - Fund Type 2x

16,500.00
(1)
E1001 - NIP Change in
Fixed Assets

E1001 - NIP Change in Fixed Assets

16,500.00
(2)

(3)

(4)

(5)

B2102 - Capital Lease Payable

292.81 (3)

23510 - Contract Maint/Repair

28810 - Interest Exp

287.19
110.00

80511 - Depreciation Exp - Equip

196.43

A8511 - Acc Dep - Equipment

16,500.00

B2106 - Capital Lease

Payable

16,500.00

A0901 - Cash on HandInterfund

690.00

(4)

A8511 - Acc Dep Equipment

196.43

(5)

A8011 - Equipment

16,500.00
16,500.00

Amounts (for
illustrative
purposes only)

Example
(1)

Capitalize Asset in Fixed Assets at the present value of the minimum lease payments or the fair value of
the leased property, which ever is less.

16,500.00

(2)

Reclassify the equity (recorded in Banner Fixed Assets when capitalizing the lease) to a capital lease
liability

16,500.00

(3)
(4)
(5)

Make monthly lease payments of principal, interest and executory costs

Record depreciation by running monthly depreciation process in Banner Fixed Assets
Remove asset at lease end when institution does not retain ownership of asset

690.00
196.43
16,500.00

Printed: 5/25/2014, 4:19 AM

Page 3 of 3