$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 Total Net Fair Value/PF

Payment of Min Lease Lease Executory Lease of Min Lease

Date Payments Payment Costs Payment Interest Principal Payments

07/01/06 $16,500.00 690.00 287.19 402.81 110.00 292.81 16,207.19

16,207.19 690.00 287.19 402.81 108.05 294.76 15,912.43

15,912.43 690.00 287.19 402.81 106.08 296.73 15,615.70

15,615.70 690.00 287.19 402.81 104.10 298.71 15,317.00

15,317.00 690.00 287.19 402.81 102.11 300.70 15,016.30

15,016.30 690.00 287.19 402.81 100.11 302.70 14,713.60

14,713.60 690.00 287.19 402.81 98.09 304.72 14,408.88

14,408.88 690.00 287.19 402.81 96.06 306.75 14,102.13

14,102.13 690.00 287.19 402.81 94.01 308.80 13,793.33

13,793.33 690.00 287.19 402.81 91.96 310.85 13,482.48

13,482.48 690.00 287.19 402.81 89.88 312.93 13,169.55

13,169.55 690.00 287.19 402.81 87.80 315.01 12,854.54

07/01/07 12,854.54 690.00 287.19 402.81 85.70 317.11 12,537.42

12,537.42 690.00 287.19 402.81 83.58 319.23 12,218.20

12,218.20 690.00 287.19 402.81 81.45 321.36 11,896.84

11,896.84 690.00 287.19 402.81 79.31 323.50 11,573.34

11,573.34 690.00 287.19 402.81 77.16 325.65 11,247.69

11,247.69 690.00 287.19 402.81 74.98 327.83 10,919.86

10,919.86 690.00 287.19 402.81 72.80 330.01 10,589.85

10,589.85 690.00 287.19 402.81 70.60 332.21 10,257.64

10,257.64 690.00 287.19 402.81 68.38 334.43 9,923.22

9,923.22 690.00 287.19 402.81 66.15 336.66 9,586.56

9,586.56 690.00 287.19 402.81 63.91 338.90 9,247.66

9,247.66 690.00 287.19 402.81 61.65 341.16 8,906.50

07/01/08 8,906.50 690.00 287.19 402.81 59.38 343.43 8,563.07

8,563.07 690.00 287.19 402.81 57.09 345.72 8,217.35

8,217.35 690.00 287.19 402.81 54.78 348.03 7,869.32

7,869.32 690.00 287.19 402.81 52.46 350.35 7,518.97

7,518.97 690.00 287.19 402.81 50.13 352.68 7,166.29

7,166.29 690.00 287.19 402.81 47.78 355.03 6,811.25

6,811.25 690.00 287.19 402.81 45.41 357.40 6,453.85

6,453.85 690.00 287.19 402.81 43.03 359.78 6,094.07

6,094.07 690.00 287.19 402.81 40.63 362.18 5,731.88

5,731.88 690.00 287.19 402.81 38.21 364.60 5,367.29

5,367.29 690.00 287.19 402.81 35.78 367.03 5,000.26

5,000.26 690.00 287.19 402.81 33.34 369.47 4,630.78

07/01/09 4,630.78 690.00 287.19 402.81 30.87 371.94 4,258.85

4,258.85 690.00 287.19 402.81 28.39 374.42 3,884.43

3,884.43 690.00 287.19 402.81 25.90 376.91 3,507.51

3,507.51 690.00 287.19 402.81 23.38 379.43 3,128.09

3,128.09 690.00 287.19 402.81 20.85 381.96 2,746.13

2,746.13 690.00 287.19 402.81 18.31 384.50 2,361.63

2,361.63 690.00 287.19 402.81 15.74 387.07 1,974.56

1,974.56 690.00 287.19 402.81 13.16 389.65 1,584.92

1,584.92 690.00 287.19 402.81 10.57 392.24 1,192.67

1,192.67 690.00 287.19 402.81 7.95 394.86 797.81

797.81 690.00 287.19 402.81 5.32 397.49 400.32

400.32 690.00 287.19 402.99 2.67 400.32 0.00

Total 33,120.00 13,785.12 19,335.06 2,835.06 16,500.00

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

Budgeted Operations - Fund Type 11

(3) 40111 - Equipment Lease Purchase 292.81 (3) A0901 - Cash on Hand-

Interfund

690.00

23510 - Contract Maint/Repair 287.19

28810 - Interest Exp 110.00

Investment in Plant - FT87

(1) A8011 - Equipment 16,500.00

(1) E1001 - NIP Change in

Fixed Assets

16,500.00

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

(2) B2106 - Capital Lease

Payable

16,500.00

(4) 80511 - Depreciation Exp - Equip 196.43

(4) A8511 - Acc Dep -

Equipment

196.43

(5) B2102 - Capital Lease Payable 3,645.46

(5) E1001 - NIP Change in

Fixed Assets

3,645.46

(6) A8511 - Acc Dep - Equipment 16,500.00

(6) A8011 - Equipment 16,500.00

Example(1) 16,500.00

(2) 16,500.00

(3) 690.00

(4) 196.43

(5) 3,645.46

(6) 16,500.00

Amounts (for

illustrative

purposes only)

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

Remove asset at lease end when institution does not retain ownership of asset

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.

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

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

Auxiliary Enterprise - Fund Type 2x

(1) A8011 - Equipment 16,500.00

(1) E1001 - NIP Change in

Fixed Assets

16,500.00

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

(2) B2106 - Capital Lease

Payable

16,500.00

(3) B2102 - Capital Lease Payable 292.81 (3) A0901 - Cash on Hand-

Interfund

690.00

23510 - Contract Maint/Repair 287.19

28810 - Interest Exp 110.00

(4) 80511 - Depreciation Exp - Equip 196.43

(4) A8511 - Acc Dep -

Equipment

196.43

(5) A8511 - Acc Dep - Equipment 16,500.00

(5) A8011 - Equipment 16,500.00

Example(1) 16,500.00

(2) 16,500.00

(3) 690.00

(4) 196.43

(5) 16,500.00

Record depreciation by running monthly depreciation process in Banner Fixed Assets

Remove asset at lease end when institution does not retain ownership of asset

Amounts (for

illustrative

purposes only)

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

Printed: 5/25/2014, 4:19 AM Page 3 of 3