Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $168,120. 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 rental payments 2 years (8 quarterly periods) $ 22,500 Economic life of asset 2 at the beginning of each period years Fair value of asset $ 168,120 Implicit interest rate (Also lessee's incremental borrowing rate) 8% Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. Complete this question by entering your answers in the tabs below. Amortization Schedule General Journal Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. Note: 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. View transaction list Show less
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $168,120. 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 rental payments 2 years (8 quarterly periods) $ 22,500 Economic life of asset 2 at the beginning of each period years Fair value of asset $ 168,120 Implicit interest rate (Also lessee's incremental borrowing rate) 8% Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. Complete this question by entering your answers in the tabs below. Amortization Schedule General Journal Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. Note: 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. View transaction list Show less
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2024. Edison purchased the
equipment from International Machines at a cost of $168,120.
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 rental payments
2
years (8 quarterly periods)
$ 22,500
Economic life of asset
2
at the beginning of each period
years
Fair value of asset
$ 168,120
Implicit interest rate (Also
lessee's incremental borrowing
rate)
8%
Required:
Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through
January 1, 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis.
Complete this question by entering your answers in the tabs below.
Amortization
Schedule
General
Journal
Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2025. Amortization is
recorded at the end of each fiscal year (December 31) on a straight-line basis.
Note: 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.
View transaction list
Show less
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