Required information [The following information applies to the questions displayed below.] High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option to renew the lease at the end of two years for an additional three years for $9,800 per quarter. Adventures purchased the equipment at a cost of $240,201. 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 term Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lessor 2 years (8 quarterly periods) years at $9,800 per quarter $ 17,000 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years 10% Required: 1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2024. Appropriate adjusting entries are made quarterly. 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.
Required information [The following information applies to the questions displayed below.] High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option to renew the lease at the end of two years for an additional three years for $9,800 per quarter. Adventures purchased the equipment at a cost of $240,201. 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 term Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lessor 2 years (8 quarterly periods) years at $9,800 per quarter $ 17,000 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years 10% Required: 1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2024. Appropriate adjusting entries are made quarterly. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Haresh
![Required information
[The following information applies to the questions displayed below.]
High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option
to renew the lease at the end of two years for an additional three years for $9,800 per quarter. Adventures purchased the
equipment at a cost of $240,201.
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 term
Lease renewal option for an additional
Quarterly lease payments
Economic life of asset
Interest rate charged by the lessor
2 years (8 quarterly periods)
3 years at $9,800 per quarter
$ 17,000 at January 1, 2024, and at March 31, June 30, September 30, and
December 31 thereafter.
5 years
10%
Required:
1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2024. Appropriate adjusting
entries are made quarterly.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd45051a-2958-4c81-8274-57f2371e7a76%2F46b97ea4-b3e0-45e3-b184-7175f32fc99f%2Fc4p7xh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option
to renew the lease at the end of two years for an additional three years for $9,800 per quarter. Adventures purchased the
equipment at a cost of $240,201.
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 term
Lease renewal option for an additional
Quarterly lease payments
Economic life of asset
Interest rate charged by the lessor
2 years (8 quarterly periods)
3 years at $9,800 per quarter
$ 17,000 at January 1, 2024, and at March 31, June 30, September 30, and
December 31 thereafter.
5 years
10%
Required:
1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2024. Appropriate adjusting
entries are made quarterly.
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.
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