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Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $85,000. Manufacturers Southern's fiscal year ends December 31. (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: 2 years (8 quarterly periods) $15,000 at the beginning of each period 2 years Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate $112,080 88 equired: Show how International Machines determined the $15,000 quarterly lease payments. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease ayment on April 1. 2021.

Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $85,000. Manufacturers Southern's fiscal year ends December 31. (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: 2 years (8 quarterly periods) $15,000 at the beginning of each period 2 years Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate $112,080 88 equired: Show how International Machines determined the $15,000 quarterly lease payments. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease ayment on April 1. 2021.

FINANCIAL ACCOUNTING
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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Save & Exit Check m Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $85,000, Manufacturers Southern's fiscal year ends December 31. (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 provlded.) Related Informationt Lease term 2 years (8 quarterly periods) $15,000 at the beginning of each period Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate 2 years $112,080 88 Required: 1. Show how International Machines determined the $15,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how International Machines determined the $15,000 quarterly lease payments. (Round your Intermediate and final answers to the nearest whole dollar.) PV factors based on Table or Calculator function: PV of Lease Teoco Dovmant 26 of 33 Next > Prev IMG-0582.jpg IL I
Transcribed Image Text:Save & Exit Check m Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $85,000, Manufacturers Southern's fiscal year ends December 31. (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 provlded.) Related Informationt Lease term 2 years (8 quarterly periods) $15,000 at the beginning of each period Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate 2 years $112,080 88 Required: 1. Show how International Machines determined the $15,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how International Machines determined the $15,000 quarterly lease payments. (Round your Intermediate and final answers to the nearest whole dollar.) PV factors based on Table or Calculator function: PV of Lease Teoco Dovmant 26 of 33 Next > Prev IMG-0582.jpg IL I
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