Question

1

Newton Labs leased chronometers from Brookline Instruments on January 1, 2018. Brookline Instruments manufactured the chronometers at a cost of $270,000. The chronometers have a fair value of $351,000. Appropriate adjusting entries are made quarterly. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of S1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly lease paynents Economic life of asset Estimated residual value of chrononeters at end of tease tern Interest rate charged by the lessor 5 years (20 quarterly periods) $19,639 at Jan. 1. 2018, and at Mar. 31, June 30, Sept. 30, 6 years $15, 158 124 Required: 1. Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018 2. Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermediate and final answers to nearest whole dollar) No Date General Journal Debit LALA 01 2018 Las meluah Credit

need to fix required 2

2

need investment Aaron, please fix both

Answer 1

Required - 2

Lease Receivable Dr 351000

Cost of goods sold Dr 261399

Revenue 342399

Equipment 270000