Question

Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $112.446. (IV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $11) (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 (Also lessee's incremental borrowing rate) 2 years (8 quarterly periods) $15,300 at the beginning of each period 2 years $112, 446 Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2019. Depreciation 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. Amort Schedule General Journal Prepare a lease amortization schedule for the term of the lease for Manufacturers Southem. (Enter all amounts as positive values.) Lease Payments Payment Date Effective Interest Decrease in Balance Lease Balance 01/01/2018 04/01/2018 < Prev 5 of 10 Next >

Answer 1

Lanrwer Regie Amortization Table Magufactuves Soythem company Schedule of lense Amortization Table For 8 periods m ent Datel beque_ Op. Balance Effective Intewest Decrease Lo Bakalace lese Bylizce c=6x2.5% d = 15300-C lei 6-d Z 1/4/18 1/7/18 1/10/18 112446 97146 84275 2429 2107 1777 1439 71082 15300 12871 13193 13523 1386) 14208 14563 14927 g7146 84275 71082 57559 43698 29490 14927 1419 57559 y092 474462 43698 29490 737 1/7/19 373 14927 Nil Journal Entier in the books of many faclyver southern Company Debit ($ Getit ($) Dale 4/18 . Pauli ylqu5 Leqsed Equipment Ale To Leque payable Ale (being equipment lequel for 2 years) 1/2496 15300 IS 300 11/18 / Lease payable Ale - To Celsh Ale Berng lease payment more of agreement 14/18 - Dve H 14871 lase pagable Ale Interest Alc To Cash Alc 15300

Being the cand leave payment mode) OV, 3193 11/7/11 2007 Leque payable Ale Interest Ale To cash fBeing thind legse payment modes 18300 T3300 56223 11/10/18 Lease payable. Ale Con I 13523 Interest Ale 1777 L I To Gith Ale ffbeing fourth legse payment male) 131/14/18 Depreciation Ale (112446 = 2years on 56223 To Accumulated Depreciation # feeing year depreciation recortel) 11/1/19 Leve payable Ale -on 13861 I interest Ale -pw I 1439 To Cash Ale ceeing fifth leare payment mare) att . Total 245/69. / 245169 15300