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Newton Labs leased chronometers from Brookline Instruments on January 1, 2018. Brookline Instruments manufactured the chronometers at a cost of $120,000. The chronometers have a falr value of $156,000. Appropriate adjusting entries are made quarterly. Ev of 1 PV of 1 FVA of $1, PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information Lease term Quarterly lease payments Economic life of asset Estinated residual value of chronometers at end of lease term Interest rate charged by the lessor 5 years (20 quarterly periods) $8, 730 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter 6 years $6, 738 8% 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. 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.) Show lessHelp me correct my answer

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Solution: Present value of lease payments (8730)+(8730*15.67846) Add: Present value of resudual value (6738 0.67297 Present value of lease 145603 4534 150137 Date Jan.01 Lease receivable 2018 Account title and explaination (156058+4352) (120000)-(4534) (PV of Lease pmt, refer above) Debit Credit 150137 115466 Cost of goods sold Sales Equipmnet To record the lease) 145603 120000 Jan.01Cash 2018 8730 Lease Receivable 8730 To record the receipt of lease installment) Mar.31 Cash 2018 8730 Interest Revenue Lease Receivable To record the receipt of lease installment) (150137-8730)*2% (8730-2828) 2828 5902

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