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 $112,080. (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 2 years (8 quarterly periods) $15,000 at the beginning of each period 2 years $112,080 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. General Journal Amort Schedule 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.) Effective Interest Decrease in Balance Lease Lease Balance Payment Date Payments 01/01/2021 01/01/2021 04/01/2021 25 of 33 ... ... Next >
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 $112,080. (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 2 years (8 quarterly periods) $15,000 at the beginning of each period 2 years $112,080 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. General Journal Amort Schedule 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.) Effective Interest Decrease in Balance Lease Lease Balance Payment Date Payments 01/01/2021 01/01/2021 04/01/2021 25 of 33 ... ... Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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 $112,080. (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)
$15,000 at the beginning of each period
2 years
$112,080
88
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
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.)
Lease
Payments
Effective
Interest
Decrease in
Balance
Lease Balance
Payment Date
01/01/2021
01/01/2021
04/01/2021
<
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