Needham Industries leased manufacturing equipment from Burlington Leasing on January 1, 2021 Needham has the option to renew the lease at the end of two years for an additional three years, Needham is subject to a $135.000 penalty after two years if it fails to renew the lease. Burlington Leasing purchased the equipment from Springfield Machines at a cost of $250,177 (EV of $1, PV of $1. EVA of $1. PVA of $1. EVAD of $1 and EVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Infornation Lease term Lease renewal option for an additional 2 years Quarterly lease payments 3 years (12 quarterly periods) $45,000 at Jan. 1, 2021 and at Mar 11. June 30, Sept. 30 and Dec. 31 thereafter. 5 years tconomie 1ife of asset Interest rate charged by the lessor Required: Prepare appropriate journal entries for Needham Industries from the beginning of the lease through March 31 2021 Appropriate adjusting entries are made quarterly. (If no entry is required for a transaction/event, select "No journal entry required" in the first occount field. Round your answers to the nearest whole dollar amounts.) View transactionttst View journal entry worksheet Debit Credit Record the beginning of the lease for Needham Industries. Record the quarterly rental paid by Needham Industries. Record the quarterly rental and interest paid by Needham Industries. Record the amortization of Right-of-use equipment for Needham Induistries. 文
Needham Industries leased manufacturing equipment from Burlington Leasing on January 1, 2021 Needham has the option to renew the lease at the end of two years for an additional three years, Needham is subject to a $135.000 penalty after two years if it fails to renew the lease. Burlington Leasing purchased the equipment from Springfield Machines at a cost of $250,177 (EV of $1, PV of $1. EVA of $1. PVA of $1. EVAD of $1 and EVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Infornation Lease term Lease renewal option for an additional 2 years Quarterly lease payments 3 years (12 quarterly periods) $45,000 at Jan. 1, 2021 and at Mar 11. June 30, Sept. 30 and Dec. 31 thereafter. 5 years tconomie 1ife of asset Interest rate charged by the lessor Required: Prepare appropriate journal entries for Needham Industries from the beginning of the lease through March 31 2021 Appropriate adjusting entries are made quarterly. (If no entry is required for a transaction/event, select "No journal entry required" in the first occount field. Round your answers to the nearest whole dollar amounts.) View transactionttst View journal entry worksheet Debit Credit Record the beginning of the lease for Needham Industries. Record the quarterly rental paid by Needham Industries. Record the quarterly rental and interest paid by Needham Industries. Record the amortization of Right-of-use equipment for Needham Induistries. 文
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Needham Industries leased manufacturing equipment from Burlington Leasing on January 1, 2021 Needham has the option to renew
the lease at the end of two years for an additional three years, Needham is subject to a $135.000 penalty after two years if it fails to
renew the lease. Burlington Leasing purchased the equipment from Springfield Machines at a cost of $250.177 (EV of $1. PV of S1. EVA
Qf S1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Related Infornation
3 years (12 quarterly periods)
Lease term
Lease renewal option for an additional 2 years
Quarterly lease payments
$45,000 at Jan. 1, 2021 and at Mar 11, June 30, Sept.
30 and Dec. 31 thereafter.
5 years
Economie 1ife of asset
Interest rate charged by the 1lessor
Required:
Prepare appropriate journal entries for Needham Industries from the beginning of the lease through March 31 2021 Appropriate
adjusting entries are made quarterly (If no entry is required for a transaction/event, select "No journal entry required" in the first
account field. Round your answers to the nearest whole dollar amounts.)
View transactiontist
View journal entry worksheet
Debit
Credit
Record the beginning of the lease for Needham
Industries.
Record the quarterly rental paid by Needham Industries.
Record the quarterly rental and interest paid by Needham
Industries.
Record the amortization of Right-of-use equipment for
Needham Industries.
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