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 $9,000 per quarter. Adventures purchased the equipment at a cost of $212,218. Note: Use Excel, or a financial calculator. Related Information: Lease term 2 years (8 quarterly periods) Lease renewal option for an additional 3 years at $9,000 per quarter Quarterly lease payments Economic life of asset $ 16,000 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years Interest rate charged by the lessor 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.
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 $9,000 per quarter. Adventures purchased the equipment at a cost of $212,218. Note: Use Excel, or a financial calculator. Related Information: Lease term 2 years (8 quarterly periods) Lease renewal option for an additional 3 years at $9,000 per quarter Quarterly lease payments Economic life of asset $ 16,000 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years Interest rate charged by the lessor 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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 $9,000 per quarter. Adventures purchased the
equipment at a cost of $212,218.
Note: Use Excel, or a financial calculator.
Related Information:
Lease term
2 years (8 quarterly periods)
Lease renewal option for an additional 3 years at $9,000 per quarter
Quarterly lease payments
Economic life of asset
$ 16,000 at January 1, 2024, and at March 31, June 30, September 30,
and December 31 thereafter.
5 years
Interest rate charged by the lessor
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc502cd18-f6b2-4dd2-9c68-1221db0841b2%2F62e442e6-8623-49e3-a00f-44b61b9583f5%2Ftdrvon_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 $9,000 per quarter. Adventures purchased the
equipment at a cost of $212,218.
Note: Use Excel, or a financial calculator.
Related Information:
Lease term
2 years (8 quarterly periods)
Lease renewal option for an additional 3 years at $9,000 per quarter
Quarterly lease payments
Economic life of asset
$ 16,000 at January 1, 2024, and at March 31, June 30, September 30,
and December 31 thereafter.
5 years
Interest rate charged by the lessor
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.
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