Ballie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the equipment from Doane Machines at a cost of $252,500, its fair value. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1, and PVAD of $1) Related Information: Lease term 2 years (8 quarterly periods) $17,500 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 Quarterly lease payments thereafter Economic life of asset 5 years Interest rate charged by the lessor. 12% Required: Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2021. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter. Amort Schedule Payment Date Lease Effective Decrease in Lease Balance Payments Interest Balance _____________ 01/01/2021 _________ ___________ ____________ _____________ 03/31/2021 __________ ____________ ____________ 06/30/2021 ____________ 09/30/2023 ____________ 12/30/2021 ____________ 03/31/2022 06/30/2022 09/30/2022 General Journal Record the appropriate adjusting entries at the end of each quarter for Baillie Power from the commencement of the lease through January 1, 2021. December 31 is the fiscal year end for each company. ( If no entry is required for a transaction/event, select “No journal entry required” in the first account field. Round your intermediate calculations and final answers to the nearest whole dollar.) January 01, 2021, Record the beginning of the lease for Baillie Power. January 01, 2021, Record the quarterly lease payment made by Baillie Power. March 31, 2021, Record the quarterly lease payment made by Baillie Power. March 31, 2021, Record amortization of the right-of-use asset for Baillie Power. June 30, 2021, Record the quarterly lease payment made by Baillie Power. June 30, 2021, Record amortization of the right-of-use asset for Baillie Power. September 30, 2021, Record the quarterly lease payment made by Baillie Power. September 30, 2021, Record amortization of the right-of-use asset for Baillie Power. December 31, 2021, Record the quarterly lease payment made by Baillie Power. December 31, 2021, Record amortization of the right-of-use asset for Baillie Power.
Ballie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the equipment from Doane Machines at a cost of $252,500, its fair value. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1, and PVAD of $1)
Related Information:
Lease term 2 years (8 quarterly periods)
$17,500 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31
Quarterly lease payments thereafter
Economic life of asset 5 years
Interest rate charged by the lessor. 12%
Required:
Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2021. December 31 is the fiscal year end for each company. Appropriate
Amort Schedule
Payment Date Lease Effective Decrease in Lease Balance
Payments Interest Balance
_____________
01/01/2021 _________ ___________ ____________ _____________
03/31/2021 __________ ____________ ____________
06/30/2021 ____________
09/30/2023 ____________
12/30/2021 ____________
03/31/2022
06/30/2022
09/30/2022
General Journal
Record the appropriate adjusting entries at the end of each quarter for Baillie Power from the commencement of the lease through January 1, 2021. December 31 is the fiscal year end for each company. ( If no entry is required for a transaction/event, select “No
- January 01, 2021, Record the beginning of the lease for Baillie Power.
- January 01, 2021, Record the quarterly lease payment made by Baillie Power.
- March 31, 2021, Record the quarterly lease payment made by Baillie Power.
- March 31, 2021, Record amortization of the right-of-use asset for Baillie Power.
- June 30, 2021, Record the quarterly lease payment made by Baillie Power.
- June 30, 2021, Record amortization of the right-of-use asset for Baillie Power.
- September 30, 2021, Record the quarterly lease payment made by Baillie Power.
- September 30, 2021, Record amortization of the right-of-use asset for Baillie Power.
- December 31, 2021, Record the quarterly lease payment made by Baillie Power.
- December 31, 2021, Record amortization of the right-of-use asset for Baillie Power.
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