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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 $250,000, 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 term
Quarterly lease payments
Economic life of asset
Interest rate charged by the lessor
Amortization General
Schedule
Journal
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.
Payment Date
01/01/2024
03/31/2024
06/30/2024
Prepare a lease amortization schedule.
Note: Round your intermediate calculations and final answers to the nearest whole dollar. Enter all amounts as positive
values.
09/30/2024
12/31/2024
03/31/2024
06/30/2025
09/30/2025
Total
Lease
Payments
$
0
2 years (8 quarterly periods)
on January 1, 2024, and on March 31, June 30, September 30, and December 31
thereafter
years
$15,000
$
Effective
Interest
5
8%
0 $
Decrease in
Balance
< Amortization Schedule
0
Lease Balance
General Journal >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faa843851-88a8-44aa-8ef3-0598b8a7b0e5%2F9c28d61c-3d2f-4524-8e51-3369d14048ec%2F5t60zaj_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $250,000, 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 term
Quarterly lease payments
Economic life of asset
Interest rate charged by the lessor
Amortization General
Schedule
Journal
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.
Payment Date
01/01/2024
03/31/2024
06/30/2024
Prepare a lease amortization schedule.
Note: Round your intermediate calculations and final answers to the nearest whole dollar. Enter all amounts as positive
values.
09/30/2024
12/31/2024
03/31/2024
06/30/2025
09/30/2025
Total
Lease
Payments
$
0
2 years (8 quarterly periods)
on January 1, 2024, and on March 31, June 30, September 30, and December 31
thereafter
years
$15,000
$
Effective
Interest
5
8%
0 $
Decrease in
Balance
< Amortization Schedule
0
Lease Balance
General Journal >
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