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Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronom

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1)
Present value of periodic lease payments = $8730 x 15.32380 133776.77
present value of an annuity due of $1: n=20, i=2% 16.67846
1-Jan Right of use Assets $ 133776.77
           LeasePayable (Present value of minimum lease payments) $133776.77
1-Jan Lease Payable $   8730
                Cash (Quarterly lease Payment) $  8730
31-Mar Interest expense (2% x [$133776.77- 8730]) $     2500.94
Lease payable (difference) $   6229.06
              Cash (lease payment) $  8730
31-Mar Amortization Expenses (133776.77/20) $   6688.84
                 Right of use Assets $  6688.84
2)
1-Jan Lease receivable ( ([8730 × 16.67846**] + [$6738 × .67297*]) $ 150137.43
Cost of good Sold ($120000 - [$6738 × .67297*]) $ 115465.53
                 Sales Revenue [$150137.43- ([$6738 × .67297*]) $145602.96
               Equipment $120000
1-Jan Cash $   8730
      Lease receivable $  8730
31-Mar Cash $   8730
      Lease receivable $  5901.85
      Interest revenue ($150137.43- $8730) x 2% $    2828.15
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