Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2024. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2024. Courtney purchased the equipment from Doane Machines at a cost of $253,000, its fair value.

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)

Related Information:  Lease term2years (8 quarterly periods)Quarterly lease payments$18,000on January 1, 2024, and on March 31, June 30, September 30, and December 31 thereafterEconomic life of asset5yearsInterest rate charged by the lessor8%

Required:

Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2024. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.

Complete this question by entering your answers in the tabs below.
Amortization General
Schedule Journal
Prepare a lease amortization schedule.
Note: Round your intermediate calculations and final answers to the nearest whole dollar. Enter all amounts as positive
values.
Payment Date
01/01/2024
03/31/2024
06/30/2024
09/30/2024
12/31/2024
03/31/2025
06/30/2025
09/30/2025
Total
Lease
Payments
Effective Decrease in
Interest
Balance
< Amortization Schedule
Lease
Balance
General Journal >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Amortization General Schedule Journal Prepare a lease amortization schedule. Note: Round your intermediate calculations and final answers to the nearest whole dollar. Enter all amounts as positive values. Payment Date 01/01/2024 03/31/2024 06/30/2024 09/30/2024 12/31/2024 03/31/2025 06/30/2025 09/30/2025 Total Lease Payments Effective Decrease in Interest Balance < Amortization Schedule Lease Balance General Journal >
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