High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option to renew the lease at the end of two years for an additional three years for $8,000 per quarter. Adventures purchased the equipment at a cost of $198,375. 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 Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lesson 2 years (8 quarterly periods) 3 years at $8,000 per quarter $ 15,000 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years 8% 2. Prepare an amortization schedule for the term of the lease.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option
to renew the lease at the end of two years for an additional three years for $8,000 per quarter. Adventures purchased the
equipment at a cost of $198,375.
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
Lease renewal option for an additional
Quarterly lease payments
Economic life of asset
Interest rate charged by the lesson
2. Prepare an amortization schedule for the term of the lease.
Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.
Date
January 1, 2024
March 31, 2024
June 30, 2024
September 30, 2024
December 31, 2024
March 31, 2025
June 30, 2025
September 30, 2025
December 31 2025
Lease
Payments
2 years (8 quarterly periods)
3 years at $8,000 per quarter
$ 15,000 at January 1, 2024, and at March 31, June 30, September 30, and
December 31 thereafter.
5 years
Effective
Interest
Decrease in
Balance
Balance
Transcribed Image Text:High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option to renew the lease at the end of two years for an additional three years for $8,000 per quarter. Adventures purchased the equipment at a cost of $198,375. 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 Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lesson 2. Prepare an amortization schedule for the term of the lease. Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values. Date January 1, 2024 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31 2025 Lease Payments 2 years (8 quarterly periods) 3 years at $8,000 per quarter $ 15,000 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years Effective Interest Decrease in Balance Balance
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