1. Lease Amortization Schedule
Payment Date | Lease Payments | Effective Interest | Decrease in Balance | Outstanding Balance |
01/01/2021 | 119,300 | |||
01/01/2021 | 16,500 | 16,500 | 102,800 | |
04/01/2021 | 16,500 | 3,084 | 13,416 | 89,384 |
07/01/2021 | 16,500 | 2,682 | 13,818 | 75,566 |
10/01/2021 | 16,500 | 2,267 | 14,233 | 61,333 |
01/01/2022 | 16,500 | 1,840 | 14,660 | 46,673 |
04/01/2022 | 16,500 | 1,400 | 15,100 | 31,573 |
07/01/2022 | 16,500 | 947 | 15,553 | 16,020 |
10/01/2022 | 16,500 | 480 | 16,020 | 0 |
TOTAL | 132,000 | 12,700 |
2. Journal Entries
Date | Account title and Explanation | Debit | Credit |
01/01/2021 | Lease receivables Dr | 119,300 | |
To Equipment | 119,300 | ||
(To record lease) | |||
01/01/2021 | Cash Dr | 16,500 | |
To Lease receivable | 16,500 | ||
(To record cash received) | |||
04/01/2021 | Cash Dr | 16,500 | |
To Lease receivables | 13,416 | ||
To Interest revenue | 3,084 | ||
(To record cash received) | |||
07/01/2021 | Cash Dr | 16,500 | |
To Lease receivables | 13,818 | ||
To Interest revenue | 2,682 | ||
(To record cash received) | |||
10/01/2021 | Cash Dr | 16,500 | |
To Lease receivables | 14,233 | ||
To Interest revenue | 2,267 | ||
(To record cash received) | |||
12/31/2021 | Interest receivables Dr | 1,840 | |
To Interest revenue | 1,840 | ||
(To record interest revenue accured) | |||
01/01/2022 | Cash Dr | 16,500 | |
To Lease receivables | 14,660 | ||
To Interest revenue | 1,840 | ||
(To record cash received) |
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $139,107. (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) Quarterly rental payments $18,000 at the beginning of each period Economic life of asset 2 years Fair value of asset...
Exercise 15-7 Sales-type lease with no selling profit; lessor [LO15-2] Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $110,623. (EV of $1. PV of S1. FVA of $1, PVA of $1. EVAD of $1 and PVAD of $) (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...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $123,651. (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) $16,000 at the beginning of each Quarterly rental payments period Economic life of asset 2 years Fair value of asset...
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $127,024. (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) Quarterly rental payments $17,000 at the beginning of each period Economic life of asset 2 years Fair value of asset...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $131,379. (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.) or Use Intermediate Accounting table if not provided. Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $17,000 at the beginning of each period Economic life...
TB Problem 15-195 (Static) 3 Northwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2021. Hi-Tech manufactured the equipment at a cost of $90,000 30 points Skipped Other information: Lease term Annual payments Lite of asset Implicit interest rate Incremental rate PV, annuity due, 3 periods, 88 PV of lease payments 3 years $40,000 on January 1 each year 3 years B% 2.7833 $111,332 eBook There is no expected residual value. G References Required: Prepare appropriate journal entries...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $124,782. (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 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) $16,700...
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 $136.768. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $ (Use appropriate factor(s) from the tables provided.) Related Information Lease term Quarterly rental payments Economie life of asset Fair value of asset Implicit interest rate (Also lessed's incremental borrowing rate) 2 years (8 quarterly periods) $18,000...
Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $105,000. Manufacturers Southern's fiscal year ends December 31. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (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 2 years (8 quarterly periods) $17,000...
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $112,446. (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.) or Use Intermediate Accounting table if not provided Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $15,300 at the beginning of each period Economic life...