Gadubhai
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Gadubhai
Transcribed Image Text:Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2024. Courtney purchased the equipment
from Doane Machines at a cost of $251,000, Its fair value.
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 lease payments
Economic life of asset
Interest rate charged by the lessor
Amortization General
Schedule
Journal
Required:
Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31,
2024. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.
Payment Date
Complete this question by entering your answers in the tabs below.
01/01/2024
03/31/2024
06/30/2024
09/30/2024
12/31/2024
03/31/2025
06/30/2025
09/30/2025
Total
Prepare a lease amortization schedule.
Note: Round your intermediate calculations and final answers to the nearest whole dollar. Enter all amounts as positive
values.
Lease
Payments
$
16,000
16,000
Effective
Interest
2
$16,000
32,000 $
0
5
4%
0 $
years (8 quarterly periods)
on January 1, 2824, and on March 31, June 30, September 30, and December 31
thereafter
years
Decrease in
Balance
16,000
16,000
< Amortization Schedule
Lease Balance
General Journal >
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