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Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $112,080. 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 rental payments Economic life of asset 2 years (8 quarterly periods) $ at the beginning of each 15,000 period 2 years $ Fair value of asset 112,080 Implicit interest rate (Also lessee's 8% incremental borrowing rate) Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's fiscal year ends December 31. Complete this question by entering your answers in the tabs below. Amortiz... General Schedule Journal Prepare the appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's fiscal year ends December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. Show less▲ No Date General Journal 1 January 01, 2 Right-of-use asset Debit 112,080 Credit Lease payable × 112,080 2 January 01, 2Lease payable Cash 3 4 April 01, 2024 Interest expense Lease payable Cash July 01, 2024 Interest expense Lease payable Cash 5 October 01, 2 Interest expense Lease payable Cash 6 December 31 Interest expense Interest payable 7 January 01, 2 Interest expense 1,142 1,142 11,422X Lease payable Cash 13,858 15,000X < Amortization Schedule General Journal > × × ××× ××× × ×× × × ××× 15,000 15,000 1,942X 13,058 15,000X 1,680X 13,320 × 15,000X 1,414X 13,586 × 15,000X

Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $112,080. 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 rental payments Economic life of asset 2 years (8 quarterly periods) $ at the beginning of each 15,000 period 2 years $ Fair value of asset 112,080 Implicit interest rate (Also lessee's 8% incremental borrowing rate) Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's fiscal year ends December 31. Complete this question by entering your answers in the tabs below. Amortiz... General Schedule Journal Prepare the appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's fiscal year ends December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. Show less▲ No Date General Journal 1 January 01, 2 Right-of-use asset Debit 112,080 Credit Lease payable × 112,080 2 January 01, 2Lease payable Cash 3 4 April 01, 2024 Interest expense Lease payable Cash July 01, 2024 Interest expense Lease payable Cash 5 October 01, 2 Interest expense Lease payable Cash 6 December 31 Interest expense Interest payable 7 January 01, 2 Interest expense 1,142 1,142 11,422X Lease payable Cash 13,858 15,000X < Amortization Schedule General Journal > × × ××× ××× × ×× × × ××× 15,000 15,000 1,942X 13,058 15,000X 1,680X 13,320 × 15,000X 1,414X 13,586 × 15,000X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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S Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $112,080. 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 rental payments Economic life of asset 2 years (8 quarterly periods) $ at the beginning of each 15,000 period 2 years $ Fair value of asset 112,080 Implicit interest rate (Also lessee's 8% incremental borrowing rate) Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's fiscal year ends December 31. Complete this question by entering your answers in the tabs below. Amortiz... General Schedule Journal Prepare the appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's fiscal year ends December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. Show less▲ No 1 Date General Journal January 01, 2 Right-of-use asset Debit X112,080 Credit Lease payable ☑ 112,080 2 January 01, 2 Lease payable Cash × ☑ 15,000 15,000 3 April 01, 2024 Interest expense Lease payable Cash ✓ 1,942X ☑ 13,058 ☑ 15,000X 4 July 01, 2024 Interest expense Lease payable ☑ 1,680X ☑ 13,320 Cash 15,000X 5 October 01, 2 Interest expense × 1,414X Lease payable Cash ☑ 13,586 ☑ 15,000X 6 December 31 Interest expense × 1,142 Interest payable ☑ 1,142 7 January 01, 2 Interest expense Lease payable ☑ 11,422X ☑ 13,858 ✓ Cash ☑ 15,000X < Amortization Schedule General Journal >
Transcribed Image Text:S Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $112,080. 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 rental payments Economic life of asset 2 years (8 quarterly periods) $ at the beginning of each 15,000 period 2 years $ Fair value of asset 112,080 Implicit interest rate (Also lessee's 8% incremental borrowing rate) Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's fiscal year ends December 31. Complete this question by entering your answers in the tabs below. Amortiz... General Schedule Journal Prepare the appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's fiscal year ends December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. Show less▲ No 1 Date General Journal January 01, 2 Right-of-use asset Debit X112,080 Credit Lease payable ☑ 112,080 2 January 01, 2 Lease payable Cash × ☑ 15,000 15,000 3 April 01, 2024 Interest expense Lease payable Cash ✓ 1,942X ☑ 13,058 ☑ 15,000X 4 July 01, 2024 Interest expense Lease payable ☑ 1,680X ☑ 13,320 Cash 15,000X 5 October 01, 2 Interest expense × 1,414X Lease payable Cash ☑ 13,586 ☑ 15,000X 6 December 31 Interest expense × 1,142 Interest payable ☑ 1,142 7 January 01, 2 Interest expense Lease payable ☑ 11,422X ☑ 13,858 ✓ Cash ☑ 15,000X < Amortization Schedule General Journal >
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