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Newton Labs leased chronometers from Brookline Instruments on January 1, 2024. Brookline Instruments manufactured the chronometers at a cost of $120,000. The chronometers have a fair value of $150,137. Appropriate adjusting entries are made qu- Related Information: Lease term Quarterly lease payments Economic life of asset Estimated residual value of chronometers at end of lease. 5 years (20 quarterly periods) $ 8,730 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 6 years $ 6,738 8% term Interest rate charged by the lessor 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) Required: 1. Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2024, and on Mar 2024. 2. Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2024, and March 31, 2024.

Newton Labs leased chronometers from Brookline Instruments on January 1, 2024. Brookline Instruments manufactured the chronometers at a cost of $120,000. The chronometers have a fair value of $150,137. Appropriate adjusting entries are made qu- Related Information: Lease term Quarterly lease payments Economic life of asset Estimated residual value of chronometers at end of lease. 5 years (20 quarterly periods) $ 8,730 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 6 years $ 6,738 8% term Interest rate charged by the lessor 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) Required: 1. Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2024, and on Mar 2024. 2. Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2024, and March 31, 2024.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Newton Labs leased chronometers from Brookline Instruments on January 1, 2024. Brookline Instruments manufactured the chronometers at a cost of $120,000. The chronometers have a fair value of $150,137. Appropriate adjusting entries are made quarterly. Related Information: Lease term 5 years (20 quarterly periods) $ 8,730 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 6 years $ 6,738 8% Quarterly lease payments Economic life of asset Estimated residual value of chronometers at end of lease term Interest rate charged by the lessor 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) Required: 1. Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2024, and on March 31, 2024. 2. Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2024, and on March 31, 2024. Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Newton Labs leased chronometers from Brookline Instruments on January 1, 2024. Brookline Instruments manufactured the chronometers at a cost of $120,000. The chronometers have a fair value of $150,137. Appropriate adjusting entries are made quarterly. Related Information: Lease term 5 years (20 quarterly periods) $ 8,730 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 6 years $ 6,738 8% Quarterly lease payments Economic life of asset Estimated residual value of chronometers at end of lease term Interest rate charged by the lessor 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) Required: 1. Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2024, and on March 31, 2024. 2. Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2024, and on March 31, 2024. Complete this question by entering your answers in the tabs below.
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