Exercise 15-8 (Algo) Sales-type lease with selling profit; lessor; calculate lease payments [LO15-3] Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $92,000. Manufacturers Southern's fiscal year ends December 31. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate Required: 1. Show how International Machines determined the $18,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning. January 1, 2021, and the second lease payment on April 1, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 2 years (8 quarterly periods) $18,000 at the beginning of each period 2 years $134,496 8% Show how International Machines determined the $18,000 quarterly lease payments. (Round your intermediate and final answers to the nearest whole dollar. Round your percentage answer to 1 decimal place.) PV factors based on Table or Calculator function: PV of Lease Lease Payment n= < Required 1 Required 2 >
Exercise 15-8 (Algo) Sales-type lease with selling profit; lessor; calculate lease payments [LO15-3] Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $92,000. Manufacturers Southern's fiscal year ends December 31. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate Required: 1. Show how International Machines determined the $18,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning. January 1, 2021, and the second lease payment on April 1, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 2 years (8 quarterly periods) $18,000 at the beginning of each period 2 years $134,496 8% Show how International Machines determined the $18,000 quarterly lease payments. (Round your intermediate and final answers to the nearest whole dollar. Round your percentage answer to 1 decimal place.) PV factors based on Table or Calculator function: PV of Lease Lease Payment n= < Required 1 Required 2 >
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Chapter10: Long-term Liabilities
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![Exercise 15-8 (Algo) Sales-type lease with selling profit; lessor; calculate lease payments [LO15-3]
Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines
manufactured the equipment at a cost of $92,000. Manufacturers Southern's fiscal year ends December 31. (FV of $1. PV of $1. FVA of
$1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Related Information:
Lease term
Quarterly rental payments
Economic life of asset
Fair value of asset
Implicit interest rate
Required:
1. Show how International Machines determined the $18,000 quarterly lease payments.
2. Prepare appropriate entries for International Machines to record the lease at its beginning. January 1, 2021, and the second lease
payment on April 1, 2021.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Show how International Machines determined the $18,000 quarterly lease payments. (Round your intermediate and final
answers to the nearest whole dollar. Round your percentage answer to 1 decimal place.)
PV factors based on
Table or Calculator function:
PV of Lease
2 years (8 quarterly periods)
$18,000 at the beginning of each period
2 years
$134,496
Lease Payment
ле
¡=|
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F3bfe3373-c1d3-4f91-b57e-3827143935df%2Fbwqjlaf_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 15-8 (Algo) Sales-type lease with selling profit; lessor; calculate lease payments [LO15-3]
Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines
manufactured the equipment at a cost of $92,000. Manufacturers Southern's fiscal year ends December 31. (FV of $1. PV of $1. FVA of
$1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Related Information:
Lease term
Quarterly rental payments
Economic life of asset
Fair value of asset
Implicit interest rate
Required:
1. Show how International Machines determined the $18,000 quarterly lease payments.
2. Prepare appropriate entries for International Machines to record the lease at its beginning. January 1, 2021, and the second lease
payment on April 1, 2021.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Show how International Machines determined the $18,000 quarterly lease payments. (Round your intermediate and final
answers to the nearest whole dollar. Round your percentage answer to 1 decimal place.)
PV factors based on
Table or Calculator function:
PV of Lease
2 years (8 quarterly periods)
$18,000 at the beginning of each period
2 years
$134,496
Lease Payment
ле
¡=|
< Required 1
Required 2 >
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