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hello everyone in this video we are going to cover amortization tables and how this impacts lease accounting in this video were going to look at a very short example abc limited entered into a lease agreement with box limited the terms and conditions are as follows the least asset has a cash cost of four hundred and six thousand four hundred and sixty six the lease term is four years the commencement date of the lease is one january 2000 the lease payments which are due annually in arrears are 120 000 and the discount rate the interest rate implicit in the lease is 7 the question tells you prepare the journal entries for the year ended 31 december 2000 and part b disclose the lease liability in the statement of financial position as at 31 december 2001 so basically as you can see the question has spelled out the key components for us and in terms of attempting part a before you provide the journal entries you would need to do your workings and every single thing thats in this example