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Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2024. Courtney purchased the equipment from Doane Machines at a cost of $252,000, its fair value. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term Quarterly lease payments Economic life of asset Interest rate charged by the lessor 2 $17,000 5 12% years (8 quarterly periods) on January 1, 2024, and on March 31, June 30, September 30, and December 31 thereafter years Required: Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2024. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.

Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2024. Courtney purchased the equipment from Doane Machines at a cost of $252,000, its fair value. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term Quarterly lease payments Economic life of asset Interest rate charged by the lessor 2 $17,000 5 12% years (8 quarterly periods) on January 1, 2024, and on March 31, June 30, September 30, and December 31 thereafter years Required: Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2024. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2024. Courtney purchased the equipment from Doane Machines at a cost of $252,000, its fair value. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term Quarterly lease payments Economic life of asset Interest rate charged by the lessor Amortization Schedule Required: Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2024. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter. Payment Date General Journal 01/01/2024 03/31/2024 06/30/2024 09/30/2024 12/31/2024 03/31/2025 Complete this question by entering your answers in the tabs below. Lease Payments 2 17,000✔ 17,000 ✓ 17,000 $17,000 Prepare a lease amortization schedule. Note: Round your intermediate calculations and final answers to the nearest whole dollar. Enter all amounts as positive values. Effective Interest 5 12% 0✔ 2,118 x years (8 quarterly periods) on January 1, 2024, and on March 31, June 30, September 30, and December 31 thereafter years Answer is not complete. Decrease in Balance 17,000✔ 14,882 x Lease Balance $ 122,915 ✔ 105,915✔ 91,033
Transcribed Image Text:Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2024. Courtney purchased the equipment from Doane Machines at a cost of $252,000, its fair value. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term Quarterly lease payments Economic life of asset Interest rate charged by the lessor Amortization Schedule Required: Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2024. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter. Payment Date General Journal 01/01/2024 03/31/2024 06/30/2024 09/30/2024 12/31/2024 03/31/2025 Complete this question by entering your answers in the tabs below. Lease Payments 2 17,000✔ 17,000 ✓ 17,000 $17,000 Prepare a lease amortization schedule. Note: Round your intermediate calculations and final answers to the nearest whole dollar. Enter all amounts as positive values. Effective Interest 5 12% 0✔ 2,118 x years (8 quarterly periods) on January 1, 2024, and on March 31, June 30, September 30, and December 31 thereafter years Answer is not complete. Decrease in Balance 17,000✔ 14,882 x Lease Balance $ 122,915 ✔ 105,915✔ 91,033
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