Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2024. Insight Machines manufactured the equipment at a cost of $300,000 and lists a cash selling price of $344,786. Appropriate adjusting entries are made quarterly. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Related Information: Lease term Quarterly lease payments Economic life of asset Interest rate charged by the lessor Required: 1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning. January 1, 2024, and on March 31, 2024 2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning. January 1, 2024, and on March 31, 2024 View transaction list Complete this question by entering your answers in the tabs below. Journal entry worksheet Required 1 Required 2 Prepare appropriate entries for Eve Deal to record the arrangement at its beginning, January 1, 2024, and on March 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field, Round your intermediate calculations and final answer to the nearest whole dollar 1 5 years (20 quarterly periods) at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter years 2 3 $22,508 4 5 12% Record the beginning of the lease for Eye Deal.
Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2024. Insight Machines manufactured the equipment at a cost of $300,000 and lists a cash selling price of $344,786. Appropriate adjusting entries are made quarterly. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Related Information: Lease term Quarterly lease payments Economic life of asset Interest rate charged by the lessor Required: 1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning. January 1, 2024, and on March 31, 2024 2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning. January 1, 2024, and on March 31, 2024 View transaction list Complete this question by entering your answers in the tabs below. Journal entry worksheet Required 1 Required 2 Prepare appropriate entries for Eve Deal to record the arrangement at its beginning, January 1, 2024, and on March 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field, Round your intermediate calculations and final answer to the nearest whole dollar 1 5 years (20 quarterly periods) at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter years 2 3 $22,508 4 5 12% Record the beginning of the lease for Eye Deal.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1
Transcribed Image Text:Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2024, Insight Machines manufactured the
equipment at a cost of $300,000 and lists a cash selling price of $344,786. Appropriate adjusting entries are made quarterly.
Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1)
Related Information:
Lease term
Quarterly lease payments
Economic life of asset
Interest rate charged by the lessor
View transaction list
Required:
1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning. January 1, 2024, and on March 31, 2024
2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning. January 1, 2024, and on March 31,
2024
Journal entry worksheet
Complete this question by entering your answers in the tabs below.
1
5
$22,500
Required 1 Required 2
Prepare appropriate entries for Eve Deal to record the arrangement at its beginning, January 1, 2024, and on March 31, 2024.
Note: If no entry is required for a transaction/event, select "No journal entry required in the first account held. Round your intermediate
calculations and final answer to the nearest whole dollar.
2
4
5
124
years (20 quarterly periods)
at January 1, 2024, and at March 31, June 30, September 30, and
December 31 thereafter.
years
Record the beginning of the lease for Eye Deal.
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