Exercise 15-6 (Algo) Finance lease; lessee [LO15-2] Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $123,288. (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 Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis. Amort Schedule Complete this question by entering your answers in the tabs below. General Journal Payment Date Lease Payments Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern. (Round your intermediate calculations and final answers to the nearest whole dollar) 01/01/2021 S 16,500✔ 04/01/2021 07/01/2021 10/01/2021 01/01/2022 04/01/2022 07/01/2022 10/01/2022 Total Effective Interest 16,500 S 132,000 16,500 $ 2,136 16,500 16,500 16,500 16,500 16,500 S 1,848 0 $ 16,500✔ 14,364✔ 1,555 ›› › › 1,257 2 years (8 quarterly periods) $16,500 at the beginning of each period 2 years $123,288 8% $ Decrease in Balance $ 14,652 14,945 $ 15,243 15,548 641 $ 15,859 16,177 123,288 Answer is not complete. $ 952 $ 323 $ 8,712 $ $ Lease Balance 123,288 106,788 92,424 77,772 62,827 47,584 32,036 16,177 0
Exercise 15-6 (Algo) Finance lease; lessee [LO15-2] Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $123,288. (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 Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis. Amort Schedule Complete this question by entering your answers in the tabs below. General Journal Payment Date Lease Payments Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern. (Round your intermediate calculations and final answers to the nearest whole dollar) 01/01/2021 S 16,500✔ 04/01/2021 07/01/2021 10/01/2021 01/01/2022 04/01/2022 07/01/2022 10/01/2022 Total Effective Interest 16,500 S 132,000 16,500 $ 2,136 16,500 16,500 16,500 16,500 16,500 S 1,848 0 $ 16,500✔ 14,364✔ 1,555 ›› › › 1,257 2 years (8 quarterly periods) $16,500 at the beginning of each period 2 years $123,288 8% $ Decrease in Balance $ 14,652 14,945 $ 15,243 15,548 641 $ 15,859 16,177 123,288 Answer is not complete. $ 952 $ 323 $ 8,712 $ $ Lease Balance 123,288 106,788 92,424 77,772 62,827 47,584 32,036 16,177 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Transcribed Image Text:Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1,
2022. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. (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.)
No
1
2
3
Amort
Schedule
4
5
6
7
General
Journal
8
Date
January 01, 2021
January 01, 2021 Lease payable
Cash
April 01, 2021
Right-of-use asset
Lease payable
July 01, 2021
Interest expense
Lease payable
Cash
Interest expense
Lease payable
Cash
October 01, 2021 Interest expense
Lease payable
Cash
December 31, 202 Depreciation expense
Accumulated depreciation
December 31, 202 Amortization expense
Right-of-use asset
General Journal
January 01, 2022 Interest payable
Lease payable
Cash
››
✓
X
Debit
123,288
16,500✔
2,136
14,363✔
1,848 ✔
14,652
1,555✔
14,945
61,644 X
16,177 X
323 X
Credit
123,288✔✔
16,500✔
16,500
16,500✔
16,500
61,644 X
61,644
16,500✔
Show less
![Exercise 15-6 (Algo) Finance lease; lessee [LO15-2]
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased
the equipment from International Machines at a cost of $123,288. (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 Manufacturers Southern from the beginning of the lease
through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on
a straight-line basis.
Amort
Schedule
Complete this question by entering your answers in the tabs below.
Payment
Date
General
Journal
01/01/2021
04/01/2021
07/01/2021
10/01/2021
01/01/2022
04/01/2022
07/01/2022
10/01/2022
Total
Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern. (Round your intermediate
calculations and final answers to the nearest whole dollar)
Lease
Payments
$ 16,500✔
Effective
Interest
2 years (8 quarterly periods)
$16,500 at the beginning of each period
2 years
$123,288
0
16,500 $ 2,136
16,500
16,500
16,500
16,500
16,500
16,500
$ 132,000
8%
X Answer is not complete.
16,500
$
14,364
1,848 $ 14,652
1,555 $ 14,945
1,257 $ 15,243
323 $
$ 8,712
Decrease
in Balance
952 $ 15,548
641 $ 15,859
16,177
123,288
Lease
Balance
$ 123,288
106,788
92,424
77,772
62,827
47,584
32,036
16,177
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F59f2d588-7abf-4a6f-8cb7-80f680d12924%2F10bb8fd3-8aea-4a7d-9fc3-fe64a6e627e1%2Fun309wd_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 15-6 (Algo) Finance lease; lessee [LO15-2]
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased
the equipment from International Machines at a cost of $123,288. (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 Manufacturers Southern from the beginning of the lease
through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on
a straight-line basis.
Amort
Schedule
Complete this question by entering your answers in the tabs below.
Payment
Date
General
Journal
01/01/2021
04/01/2021
07/01/2021
10/01/2021
01/01/2022
04/01/2022
07/01/2022
10/01/2022
Total
Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern. (Round your intermediate
calculations and final answers to the nearest whole dollar)
Lease
Payments
$ 16,500✔
Effective
Interest
2 years (8 quarterly periods)
$16,500 at the beginning of each period
2 years
$123,288
0
16,500 $ 2,136
16,500
16,500
16,500
16,500
16,500
16,500
$ 132,000
8%
X Answer is not complete.
16,500
$
14,364
1,848 $ 14,652
1,555 $ 14,945
1,257 $ 15,243
323 $
$ 8,712
Decrease
in Balance
952 $ 15,548
641 $ 15,859
16,177
123,288
Lease
Balance
$ 123,288
106,788
92,424
77,772
62,827
47,584
32,036
16,177
0
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