Newton Labs leased chronometers from Brookline Instruments on January 1, 2024. Brookline Instruments manufactured the chronometers at a cost of $250,000. The chronometers have a fair value of $312,726. Appropriate adjusting entries are made quarterly. Related Information: Lease term Quarterly lease payments Economic life of asset 5 years (20 quarterly periods) $ 18,184 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 6 years Estimated residual value of chronometers at end of lease term Interest rate charged by the lessor $ 14,035 8% 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. Required 1 Required 2 Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2024, and on March 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. View transaction list Journal entry worksheet 1 2 Record the beginning of the lease for Newton Labs.
Newton Labs leased chronometers from Brookline Instruments on January 1, 2024. Brookline Instruments manufactured the chronometers at a cost of $250,000. The chronometers have a fair value of $312,726. Appropriate adjusting entries are made quarterly. Related Information: Lease term Quarterly lease payments Economic life of asset 5 years (20 quarterly periods) $ 18,184 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 6 years Estimated residual value of chronometers at end of lease term Interest rate charged by the lessor $ 14,035 8% 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. Required 1 Required 2 Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2024, and on March 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. View transaction list Journal entry worksheet 1 2 Record the beginning of the lease for Newton Labs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Newton Labs leased chronometers from Brookline Instruments on January 1, 2024. Brookline Instruments manufactured the
chronometers at a cost of $250,000. The chronometers have a fair value of $312,726. Appropriate adjusting entries are made
quarterly.
Related Information:
Lease term
Quarterly lease payments
Economic life of asset
5 years (20 quarterly periods)
$ 18,184 at January 1, 2024, and at March 31, June
30, September 30, and December 31 thereafter.
6 years
Estimated residual value of chronometers at end of
lease term
Interest rate charged by the lessor
$ 14,035
8%
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.
Required 1
Required 2
Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2024, and on March 31, 2024.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate
and final answers to nearest whole dollar.
View transaction list
Journal entry worksheet
1
2
Record the beginning of the lease for Newton Labs.
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