2. Prepare an amortization schedule for the term of the lease. (Round your intermediate and final answers to nearest whole dollar.Enter all amounts as positive values.)DateJan. 1, 2021Mar. 31, 2021June 30, 2021Sept. 30, 2021Dec. 31, 2021Mar. 31, 2022June 30, 2022Sept. 30, 2022Dec. 31, 2022Mar. 31, 2023June. 30, 2023Sept. 30, 2023Dec. 31, 2023Mar. 31, 2024June 30, 2024Sept. 30, 2024Dec. 31, 2024Mar. 31, 2025June 30, 2025Sept. 30, 2025LeasePayments15,10015,10015,10015,10015,10015,1008,1008,1008,1008,1008,1008,1008,1008,1008,1008,100EffectiveInterestDecrease inBalanceBalance Required information[The following information applies to the questions displayed below.]High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the optionto renew the lease at the end of two years for an additional three years for $8,100 per quarter. Adventures purchased theequipment at a cost of $196,141. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriatefactor(s) from the tables provided.)Related Information:Lease termLease renewal option for an additionalQuarterly lease paymentsEconomic life of assetInterest rate charged by the lessor2 years (8 quarterly periods)3 years at $8,100 per quarter$15,100 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31thereafter.5 years10%

Given information is Lease payment for the first 2 years = $15,100 per quarter Lease payment for the…

High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end of two years for an additional three years for $8,100 per quarter. Adventures purchased the equipment at a cost of $196,141. (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 Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lessor 2 years (8 quarterly periods) 3 years at $8,100 per quarter $15,100 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. 5 years 10%

High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end of two years for an additional three years for $8,100 per quarter. Adventures purchased the equipment at a cost of $196,141. (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 Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lessor 2 years (8 quarterly periods) 3 years at $8,100 per quarter $15,100 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. 5 years 10%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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