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 $251,500, 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 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. Amortization Schedule Answer is not complete. Complete this question by entering your answers in the tabs below. Payment Date 01/01/2024 03/31/2024 General Journal Prepare a lease amortization schedule. Note: Round your intermediate calculations and final answers to the nearest whole dollar. Enter all amounts as positive values. 06/30/2024 09/30/2024 12/31/2024 03/31/2025 06/30/2025 09/30/2025 Total Lease Payments 16,500 16,500 2 years (8 quarterly periods) on January 1, 2024, and on March 31, June 30, September 30, and December 31 thereafter years $ 33,000 $ $16,500 5 8% Effective Interest 0✔ Decrease in Balance 16,500 0 $ 16,500 < Amortization Schedule Lease Balance $ 123,288 General Journal >
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 $251,500, 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 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. Amortization Schedule Answer is not complete. Complete this question by entering your answers in the tabs below. Payment Date 01/01/2024 03/31/2024 General Journal Prepare a lease amortization schedule. Note: Round your intermediate calculations and final answers to the nearest whole dollar. Enter all amounts as positive values. 06/30/2024 09/30/2024 12/31/2024 03/31/2025 06/30/2025 09/30/2025 Total Lease Payments 16,500 16,500 2 years (8 quarterly periods) on January 1, 2024, and on March 31, June 30, September 30, and December 31 thereafter years $ 33,000 $ $16,500 5 8% Effective Interest 0✔ Decrease in Balance 16,500 0 $ 16,500 < Amortization Schedule Lease Balance $ 123,288 General Journal >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 $251,500, 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
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.
Amortization
Schedule
Complete this question by entering your answers in the tabs below.
Payment
Date
General
Journal
01/01/2024
03/31/2024
06/30/2024
09/30/2024
12/31/2024
03/31/2025
06/30/2025
09/30/2025
Total
Prepare a lease amortization schedule.
Note: Round your intermediate calculations and final answers to the nearest whole dollar. Enter all amounts as positive values.
Lease
Payments
16,500
16,500
2 years (8 quarterly periods)
on January 1, 2024, and on March 31, June 30, September 30, and December 31
thereafter
years
$ 33,000 $
$16,500
5
8%
Effective
Interest
0✔
Answer is not complete.
Decrease
in Balance
16,500
$ 16,500
< Amortization Schedule
Lease
Balance
$ 123,288
General Journal >
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