Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $126,890. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 2 years (8 quarterly periods) at the beginning of each period years $ 16,700 2 $ 126,890 6% Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. Answer is not complete. elow
Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $126,890. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 2 years (8 quarterly periods) at the beginning of each period years $ 16,700 2 $ 126,890 6% Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. Answer is not complete. elow
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Rr.4.
Transcribed Image Text:Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2024. Edison purchased
the equipment from International Machines at a cost of $126,890.
Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1)
Related Information:
Lease term
Quarterly rental payments
Economic life of asset
Fair value of asset
Implicit interest rate (Also
lessee's incremental borrowing
rate)
2 years (8 quarterly periods)
at the beginning of each period
years
Amortization
Schedule
$ 16,700
2
$ 126,890
Required:
Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease
through January 1, 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis.
General
Journal
6%
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Transcribed Image Text:4
5
6
7
8
July 01, 2024
October 01, 2024
December 31, 202
December 31, 202
January 01, 2025
Interest expensel
Lease payable
Cash
Interest expense
Lease payable
Cash
Interest expense
Right-of-use asset
Interest expense
Interest payable
Lease payablet
Cashi
Interest revenue
1,427
15,273
1,198
15,502
966
63,445
16,700
10,700
16,700
16,700
63,445
16,700
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