High Time Tours leased rock-climbing equipment from Adventures
Leasing on January 1, 2018. High Time has the option to renew the
lease at the end of two years for an additional three years for
$8,300 per quarter. Adventures purchased the equipment at a cost of
$203,852.(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 | 2 years (8 quarterly periods) |
Lease renewal option for an additional | 3 years at $8,300 per quarter |
Quarterly lease payments | $15,300 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. |
Economic life of asset | 5 years |
Interest rate charged by the lessor | 8% |
Required:
1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2018. Appropriate adjusting entries are made quarterly.
High Time Tours leased rock-climbing equipment from Adventures
Leasing on January 1, 2018. High Time has the option to renew the
lease at the end of two years for an additional three years for
$8,300 per quarter. Adventures purchased the equipment at a cost of
$203,852.(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 | 2 years (8 quarterly periods) |
Lease renewal option for an additional | 3 years at $8,300 per quarter |
Quarterly lease payments | $15,300 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. |
Economic life of asset | 5 years |
Interest rate charged by the lessor | 8% |
Required:
1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2018. Appropriate adjusting entries are made quarterly.
2. Prepare an amortization schedule for the term of the lease.
High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2018. High Time has...
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