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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alpesh
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 $117,772.
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 rental payments
Economic life of asset
Fair value of asset
Implicit interest rate (Also
lessee's incremental borrowing
rate)
Amortization
Schedule
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.
Complete this question by entering your answers in the tabs below.
Payment Date
2
$ 15,500
2
$ 117,772
General
Journal
01/01/2024
01/01/2024
04/01/2024
07/01/2024
10/01/2024
01/01/2025
04/01/2025
07/01/2025
10/01/2025
Total
6%
Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern.
Note: Round your intermediate calculations and final answers to the nearest whole dollar. Enter all amounts as positive values.
Lease
Payments
years (8 quarterly periods)
at the beginning of each period
years
Effective
Interest
Decrease in
Balance
Amortization Schedule
Lease Balance
General Journal
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