Problem 15-11 (Static) Lessee; renewal option [LO15-2, 15-6] [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 $8,000 per quarter. Adventures purchased the equipment at a cost of $198,375. 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 $8,000 per quarter $ 15,000 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years 8% Problem 15-11 (Static) Part 2 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 15,000 March 31, 2024 15,000 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 8,000 March 31, 2026 June 30, 2026 September 30, 2026 December 31, 2026 March 31, 2027 June 30, 2027 September 30, 2027 December 31, 2027 March 31, 2028 June 30, 2028 September 30, 2028
Problem 15-11 (Static) Lessee; renewal option [LO15-2, 15-6] [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 $8,000 per quarter. Adventures purchased the equipment at a cost of $198,375. 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 $8,000 per quarter $ 15,000 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years 8% Problem 15-11 (Static) Part 2 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 15,000 March 31, 2024 15,000 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 8,000 March 31, 2026 June 30, 2026 September 30, 2026 December 31, 2026 March 31, 2027 June 30, 2027 September 30, 2027 December 31, 2027 March 31, 2028 June 30, 2028 September 30, 2028
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 3E: Lessee Accounting Issues Sax Company signs a lease agreement dated January 1, 2019, that provides...
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![Problem 15-11 (Static) Lessee; renewal option [LO15-2, 15-6]
[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 $8,000 per quarter. Adventures purchased the
equipment at a cost of $198,375.
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 $8,000 per quarter
$ 15,000 at January 1, 2024, and at March 31, June 30, September 30,
and December 31 thereafter.
5 years
8%
Problem 15-11 (Static) Part 2
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
15,000
March 31, 2024
15,000
June 30, 2024
September 30, 2024
December 31, 2024
March 31, 2025
June 30, 2025
September 30, 2025
December 31, 2025
8,000
March 31, 2026
June 30, 2026
September 30, 2026
December 31, 2026
March 31, 2027
June 30, 2027
September 30, 2027
December 31, 2027
March 31, 2028
June 30, 2028
September 30, 2028](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c968d06-9f0d-4877-a180-236206b9ccf1%2F9c114d4a-33dd-42de-abc1-8916cc45cd99%2Fgn6bd9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 15-11 (Static) Lessee; renewal option [LO15-2, 15-6]
[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 $8,000 per quarter. Adventures purchased the
equipment at a cost of $198,375.
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 $8,000 per quarter
$ 15,000 at January 1, 2024, and at March 31, June 30, September 30,
and December 31 thereafter.
5 years
8%
Problem 15-11 (Static) Part 2
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
15,000
March 31, 2024
15,000
June 30, 2024
September 30, 2024
December 31, 2024
March 31, 2025
June 30, 2025
September 30, 2025
December 31, 2025
8,000
March 31, 2026
June 30, 2026
September 30, 2026
December 31, 2026
March 31, 2027
June 30, 2027
September 30, 2027
December 31, 2027
March 31, 2028
June 30, 2028
September 30, 2028
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