Needham Industries leased manufacturing equipment from Burlington Leasing on January 1, 2021. Needham has the option to renewthe 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 torenew the lease. Burlington Leasing purchased the equipment from Springfield Machines at a cost of $250,177. (EV of $1. PV of $1. EVAof S1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Related Inforation:Lease termLease reneval option for an additional 2 yearsQuarterly lease payments3 years (12 quarterly periods)$45,000 at Jan. 1, 2021 and at Mar 31, June 30, Sept.30 and Dec. 31 thereafter.5 yearsEcononic 1ife of assetInterest rate charged by the lessorRequired:Prepare appropriate journal entries for Needham Industries from the beginning of the lease through March 31, 2021. Appropriateadjusting entries are made quarterly. (If no entry is required for a transaction/event, select "No journal entry required" in the firstaccount field. Round your answers to the nearest whole dollar amounts.)View transaction listRecord the beginning of the lease for NeedhamIndustries.Record the quarterly rental paid by Needham Industries.Record the quarterly rental and interest paid by NeedhamIndustries.Record the amortization of Right-of-use equipment forNeedham Industries.Credit Needham Industries leased manufacturing equipment from Burlington Leasing on January 1, 2021. Needham has the option to renewthe 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 torenew the lease. Burlington Leasing purchased the equipment from Springfield Machines at a cost of $250,177 (EV of $1, PV of SIEVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use oppropriate factor(s) from the tables provided.)Reloted Information:3 years (12 quarterly periods)Lease termLease renewal option for an additional 2 yearsQuarterly lease payments$45,000 at Jan. 1, 2021 and at Mar 31, June 30, Sept.30 and Dec. 31 thereafter.Economic life of assetInterest rate charged by the lessor5 yearsRequired:Prepare appropriate journal entries for Needham Industries from the beginning of the lease through March 31, 2021. Appropriateadjusting entries are made quarterly. (If no entry is required for a transaction/event, select "No journal entry required" in the firstaccount field. Round your answers to the neorest whole dollar amounts.)View transaction listView journal entry workaheetDebitCreditRecord the beginning of the lease for NeedhamIndustries.Record the quarterly rental paid by Needham Industries.Record the quarterly rental and interest paid by NeedhamIndustries.Record the amortization of Right-of-use equipment forNeedham Industries.

Journal Entries : Journal Entry- Lease- Needham Industries Date Particulars Debit Credit…

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 penaity after two years if it fails to renew the lease. Burlington Leasing purchased the equipment from Springfield Machines at a cost of $250177. (EV of $1. EPV of $1. EVA of 51. PVA of $1. EVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tobles provided.) Reluted Infornation: Lease tern Lease renewal option for an additional 2 years Quarterly lease payments 3 years (12 quarterly periods) $45,000 at 3an. 1, 2021 and at Har 31, June 30, Sept. 30 and Dec. 31 thereafter. 5 years Econonic life 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 e transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.)

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 penaity after two years if it fails to renew the lease. Burlington Leasing purchased the equipment from Springfield Machines at a cost of $250177. (EV of $1. EPV of $1. EVA of 51. PVA of $1. EVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tobles provided.) Reluted Infornation: Lease tern Lease renewal option for an additional 2 years Quarterly lease payments 3 years (12 quarterly periods) $45,000 at 3an. 1, 2021 and at Har 31, June 30, Sept. 30 and Dec. 31 thereafter. 5 years Econonic life 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 e transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.)

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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