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 $9,300 per quarter. Adventures purchased the equipment at a cost of $219,824. 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 $9,300 per quarter $ 16,300 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years 8% 2. Prepare an amortization schedule for the term of the lease. Note: Round your Intermediate and final answers to nearest whole dollar. Enter all amounts as positive values. Date Lease Payments Effective Interest Decrease in Balance Balance January 1, 2024 March 31, 2024 16,300 16,300 16,300 June 30, 2024 16,300 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 September 30, 2026 December 31, 2026 March 31, 2027 June 30, 2027 September 30, 2027 December 31, 2024 March 31, 2028 June 30, 2028 September 30, 2028
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 $9,300 per quarter. Adventures purchased the equipment at a cost of $219,824. 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 $9,300 per quarter $ 16,300 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years 8% 2. Prepare an amortization schedule for the term of the lease. Note: Round your Intermediate and final answers to nearest whole dollar. Enter all amounts as positive values. Date Lease Payments Effective Interest Decrease in Balance Balance January 1, 2024 March 31, 2024 16,300 16,300 16,300 June 30, 2024 16,300 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 September 30, 2026 December 31, 2026 March 31, 2027 June 30, 2027 September 30, 2027 December 31, 2024 March 31, 2028 June 30, 2028 September 30, 2028
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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 $9,300 per quarter. Adventures purchased the
equipment at a cost of $219,824.
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 $9,300 per quarter
$ 16,300 at January 1, 2024, and at March 31, June 30, September 30, and
December 31 thereafter.
5 years
8%
2. Prepare an amortization schedule for the term of the lease.
Note: Round your Intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.
Date
Lease
Payments
Effective
Interest
Decrease in
Balance
Balance
January 1, 2024
March 31, 2024
16,300
16,300
16,300
June 30, 2024
16,300
September 30, 2024
December 31, 2024
March 31, 2025
June 30, 2025
September 30, 2025
December 31, 2025
March 31, 2026
June 30, 2026
September 30, 2026
December 31, 2026
March 31, 2027
June 30, 2027
September 30, 2027
December 31, 2024
March 31, 2028
June 30, 2028
September 30, 2028](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F473d60e3-d8f8-4edb-9d36-8f219ad341d8%2Faa6048c7-a229-4685-92a6-c2b539c258e3%2Flva087_processed.png&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 $9,300 per quarter. Adventures purchased the
equipment at a cost of $219,824.
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 $9,300 per quarter
$ 16,300 at January 1, 2024, and at March 31, June 30, September 30, and
December 31 thereafter.
5 years
8%
2. Prepare an amortization schedule for the term of the lease.
Note: Round your Intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.
Date
Lease
Payments
Effective
Interest
Decrease in
Balance
Balance
January 1, 2024
March 31, 2024
16,300
16,300
16,300
June 30, 2024
16,300
September 30, 2024
December 31, 2024
March 31, 2025
June 30, 2025
September 30, 2025
December 31, 2025
March 31, 2026
June 30, 2026
September 30, 2026
December 31, 2026
March 31, 2027
June 30, 2027
September 30, 2027
December 31, 2024
March 31, 2028
June 30, 2028
September 30, 2028
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