Well noted, Miguel. Thank you!

Thanks for patronizing my channel, Othman. I'm glad my tutorial video was helpful to you.

Thank you! I intend to continue, but my pen tablet has developed a fault so I'm working on getting a new one.

@@georgesaccountingtutorials Why the physical white board is of utmost importance then

@@hillsongcovers2173 With the physical one, I will need a good camera, lighting and all that. So I think the screencast is cheaper, easier and fosters a much clearer presentation.

Ok

Hello, No, incomes have credit balances and so I cannot put the gain on transfer in brackets. It is expenses that are normally put in brackets to indicate they are negatives or have debit balances. In this case, I chose to put (Dr) against depreciation and finance costs to show that they are expenses.

@@georgesaccountingtutorials Ok...But then it seems you forgot to put (Cr) against the gain on transfer of rights

@@hillsongcovers2173 That's true.

Thank you. White board as in physical board?

@@georgesaccountingtutorials Exactly, just like FOG and AE Tutorials. It is more engaging and much more dignifying. Pls your email?

@@hillsongcovers2173 [email protected]

Thanks for patronizing my tutorial videos, Joyce!

Thanks for your comment, Jonas. I have a challenge with my laptop. I hope to have it resolved as soon as practicable so I can continue.

Thanks for your comment.

Thanks for patronizing my videos, Tricia

Thanks for patronizing my channel. Yes, you are right! The amortization for "advance" is different from that of "arrears" because of the "timing" of lease payments. With the advance, lease payments are made before interest is calculated on the outstanding balance. On the other hand, with the arrears, interest is calculated on the opening balances before lease payments are made. I hope this helps.

Amen! Thanks for patronizing my channel, Prince.

Thanks for patronizing my channel, Atta Poku. It is because the 2018 lease payment (made at the beginning of the year) had already been factored into the calculation of the initial lease liability and Right-of-Use Asset. Thus, subtracting it again will be tantamount to a "double treatment" of the 2018 lease payment. I hope this helps.

Thanks for patronizing my channel, Zainab. Please which other fixed cost of 30000 are you referring to? (NB: There is no such cost in the question)

You are most welcome

Since 2019 is the second year, I multiplied the annual depreciation charge of 1,714,250 by 2 to get the 2019 accumulated depreciation (i.e. 1,714,250 x 2 =3,429,500)

@@georgesaccountingtutorials thanks much

Thanks for your question, Daniel. The prepayment should be recognized as a current asset in the "Statement of Financial Position".

Thank you for your question, Daniel. It depends on when the annual lease payments are made - whether in arrears or in advance: 1. Where annual lease payments are made in arrears (i.e. at the end of the period), the finance cost is computed on the opening balance. 2. Where annual lease payments are made in advance (i.e. at the beginning of the period), the finance cost is computed on the outstanding balance (i.e. after subtracting the lease payment).

Hello Tuwiilika, thank you for patronizing my tutorial video and for your question. This amortization schedule applies exclusively to the case where lease payments are made in advance (that is, where payment is made at the beginning of the period). Where lease payments are made in advance, the first payment is recognized as part of the Right-of-Use Asset (AND NOT IN THE AMORTIZATION SCHEDULE). That is why no lease payment was recognized in the amortization schedule for the year 2018. I hope this helps.

You can contact me via [email protected]

Oh i guess this is clear. Thank you

You are most welcome, James.

Hello, Roney. I do not have an example of that yet. In the meantime, you can contact me via "[email protected]" so we have a Google Meet on that, if that works for you.

It will be recognized as an advance payment.

Thanks, Babatunde. Yes, that is an alternative way of answering the question. You can include the 4,000 as "cost savings" under "BUY" as a negative amount (i.e. reduction in cost). That way, the total amount under "MAKE" will become 12,000 (i.e. 6,000 + 4,000 + 1,000 + 1,000) while that of "BUY" will become 14,000 (i.e. 18,000 - 4,000). You'd realize that the net difference yields the same results as when you include it as an opportunity cost under "BUY". That is to say, the 4,000 can either be included as an opportunity cost (i.e. positive amount under "MAKE") or as a reduction in cost (i.e. negative amount) under "BUY". I hope this helps.

I thought about this and even had to message him for clarifications Thank you