Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased theequipment from International Machines at a cost of $114,321. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Useappropriate factor(s) from the tables provided.)Related Information:Lease termQuarterly rental payments.Economic life of assetFair value of assetImplicit 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.AmortSchedulePayment Date01/01/202101/01/202104/01/202107/01/202110/01/202101/01/202204/01/202207/01/202210/01/2022GeneralJournalPrepare a lease amortization schedule for Edison Leasing from the beginning of the lease through January 1, 2022. Edison'sfiscal year ends December 31. (Round your intermediate and final answers to the nearest whole dollar. Enter all amounts aspositive values.)Total2 years (8 quarterly periods)$15,300 at the beginning of each period2 years$114,3218%LeasePaymentsEffectiveInterestDecrease inBalanceAmort ScheduleLease BalanceGeneral Journal >

Preparation of amortization schedule and recording of journal entry are as follows

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 $114,321. (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. 2 years (8 quarterly periods) $15,300 at the beginning of each period 2 years $114,321 8% Complete this question by entering your answers in the tabs below. Amort Schedule General Journal Prepare a lease amortization schedule for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's and fr fly ads December 21 (Bound we hale dellas Fall

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 $114,321. (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. 2 years (8 quarterly periods) $15,300 at the beginning of each period 2 years $114,321 8% Complete this question by entering your answers in the tabs below. Amort Schedule General Journal Prepare a lease amortization schedule for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's and fr fly ads December 21 (Bound we hale dellas Fall

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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Concept explainers

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.

Question

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 $114,321. (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
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
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.)
Total
2 years (8 quarterly periods)
$15,300 at the beginning of each period
2 years
$114,321
8%
Lease
Payments
Effective
Interest
Decrease in
Balance
Amort Schedule
Lease Balance
General Journal >

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Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $105,000. Manufacturers Southern's fiscal year ends December 31. (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 2 years (8 quarterly periods) Quarterly rental payments $17,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $127,024 Implicit interest rate 8% Required:1. Show how International Machines determined the $17,000 quarterly lease payments.2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.
Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the equipment from Doane Machines at a cost of $252,000, its fair value. (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 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, 2021. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter. Complete this question by entering your answers in the tabs below. Amort Schedule General Journal 01/01/2021 03/31/2021 06/30/2021 09/30/2021 12/31/2021 03/31/2022 06/30/2022 09/30/2022 Total Prepare a lease amortization schedule. (Round your intermediate calculations and final answers to the nearest…
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