Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $127,024. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 2 years (8 quarterly periods) $17,000 at the beginning of each period 2 years $127,024 8% Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's fiscal year ends December 31.
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $127,024. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 2 years (8 quarterly periods) $17,000 at the beginning of each period 2 years $127,024 8% Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's fiscal year ends December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 15-7 (Algo) Sales-type lease with no selling profit; lessor [LO15-2]
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the
equipment from International Machines at a cost of $127,024. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)
Related Information:
Lease term
Quarterly rental payments
Economic life of asset
Fair value of asset
Implicit interest rate
(Also lessee's incremental borrowing rate)
Required:
Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1,
2022. Edison's fiscal year ends December 31.
Complete this question by entering your answers in the tabs below.
Amort
Schedule
Prepare the appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's fiscal year ends
December 31. (Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole
dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
View transaction list
1
2
General
Journal
3
Record the lease.
Record cash received.
7
Record cash received.
4 Record cash received.
5 Record cash received.
6 Record accrued interest.
2 years (8 quarterly periods)
$17,000 at the beginning of each period
2 years
$127,024
8%
Record cash received.
Note : ● = journal entry has been entered
Clear entry
Record entry
X
I
Credit
View general journal
>
Show less A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F2a417f8f-fdac-4c5c-9a62-06e51b020de7%2F9n577ic_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 15-7 (Algo) Sales-type lease with no selling profit; lessor [LO15-2]
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the
equipment from International Machines at a cost of $127,024. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)
Related Information:
Lease term
Quarterly rental payments
Economic life of asset
Fair value of asset
Implicit interest rate
(Also lessee's incremental borrowing rate)
Required:
Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1,
2022. Edison's fiscal year ends December 31.
Complete this question by entering your answers in the tabs below.
Amort
Schedule
Prepare the appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's fiscal year ends
December 31. (Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole
dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
View transaction list
1
2
General
Journal
3
Record the lease.
Record cash received.
7
Record cash received.
4 Record cash received.
5 Record cash received.
6 Record accrued interest.
2 years (8 quarterly periods)
$17,000 at the beginning of each period
2 years
$127,024
8%
Record cash received.
Note : ● = journal entry has been entered
Clear entry
Record entry
X
I
Credit
View general journal
>
Show less A
![Exercise 15-7 (Algo) Sales-type lease with no selling profit; lessor [LO15-2]
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the
equipment from International Machines at a cost of $127,024. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)
Related Information:
Lease term
Quarterly rental payments
Economic life of asset
Fair value of asset
Implicit interest rate
(Also lessee's incremental borrowing rate)
Required:
Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1,
2022. Edison's fiscal year ends December 31.
Complete this question by entering your answers in the tabs below.
Amort
Schedule
Payment Date
Prepare a lease amortization schedule for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's
fiscal year ends December 31. (Round your intermediate and final answers to the nearest whole dollar. Enter all amounts as
positive values.)
01/01/2021
01/01/2021
04/01/2021
07/01/2021
10/01/2021
01/01/2022
04/01/2022
07/01/2022
10/01/2022
General
Journal
Total
2 years (8 quarterly periods)
$17,000 at the beginning of each period
2 years
$127,824
8%
Lease
Payments
Effective
Interest
Decrease in
Balance
< Amort Schedule
Lease Balance
General Journal >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F2a417f8f-fdac-4c5c-9a62-06e51b020de7%2Fxubg6gt_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 15-7 (Algo) Sales-type lease with no selling profit; lessor [LO15-2]
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the
equipment from International Machines at a cost of $127,024. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)
Related Information:
Lease term
Quarterly rental payments
Economic life of asset
Fair value of asset
Implicit interest rate
(Also lessee's incremental borrowing rate)
Required:
Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1,
2022. Edison's fiscal year ends December 31.
Complete this question by entering your answers in the tabs below.
Amort
Schedule
Payment Date
Prepare a lease amortization schedule for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's
fiscal year ends December 31. (Round your intermediate and final answers to the nearest whole dollar. Enter all amounts as
positive values.)
01/01/2021
01/01/2021
04/01/2021
07/01/2021
10/01/2021
01/01/2022
04/01/2022
07/01/2022
10/01/2022
General
Journal
Total
2 years (8 quarterly periods)
$17,000 at the beginning of each period
2 years
$127,824
8%
Lease
Payments
Effective
Interest
Decrease in
Balance
< Amort Schedule
Lease Balance
General Journal >
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