Exercise 15-16 (Algo) Lessee; operating lease [LO15-4] 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 $255,500, 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 2 years (8 quarterly periods) $20,500 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter Quarterly lease payments 5 years 8% 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. Answer is not complete
Exercise 15-16 (Algo) Lessee; operating lease [LO15-4] 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 $255,500, 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 2 years (8 quarterly periods) $20,500 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter Quarterly lease payments 5 years 8% 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. Answer is not complete
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 15-16 (Algo) Lessee; operating lease [LO15-4]
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 $255,500, 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:
2 years (8 quarterly periods)
$20,500 at jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31
Lease term
Quarterly lease payments
Economic life of asset
Interest rate charged by the lessor
thereafter
5 years
8%
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.
X Answer is not complete.
Complete this question by entering your answers in the tabs below.
Amort
Schedule
General
Journal
Prepare a lease amortization schedule. (Round your intermediate calculations and final answers to the nearest whole dollar.
Enter all amounts as positive values.)
Payment
Date
Lease
Payments
Effective
Interest
Decrease
in Balance
Lease
Balance
$ 150,172
01/01/2021
20,500
20,500
03/31/2021
20,500
06/20/2021](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F924c8514-9983-464b-8301-a72a7b008e20%2Fb67eb66e-66da-4b15-89a5-07540ad297de%2Fk0ufez_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 15-16 (Algo) Lessee; operating lease [LO15-4]
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 $255,500, 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:
2 years (8 quarterly periods)
$20,500 at jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31
Lease term
Quarterly lease payments
Economic life of asset
Interest rate charged by the lessor
thereafter
5 years
8%
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.
X Answer is not complete.
Complete this question by entering your answers in the tabs below.
Amort
Schedule
General
Journal
Prepare a lease amortization schedule. (Round your intermediate calculations and final answers to the nearest whole dollar.
Enter all amounts as positive values.)
Payment
Date
Lease
Payments
Effective
Interest
Decrease
in Balance
Lease
Balance
$ 150,172
01/01/2021
20,500
20,500
03/31/2021
20,500
06/20/2021
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