Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $119,300. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) Related Information: Lease term Quarterly rental payments Economic life of asset 2 years (8 quarterly periods) $ 16,500 at the beginning of each period 2 years Fair value of asset $ 119,300 Implicit interest rate (Also lessee's incremental borrowing 12% rate) Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's fiscal year ends December 31. Complete this question by entering your answers in the tabs below. Amortization Schedule General Journal Prepare a lease amortization schedule for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's fiscal year ends December 31. Note: Round your intermediate and final answers to the nearest whole dollar. Enter all amounts as positive values. Payment Date Lease Payments Effective Interest Decrease in Balance Lease Balance 01/01/2024 $ 119,300 01/01/2024 S 04/01/2024 16,500 $ 16,500 0 $ 16,500 102,800 2,184 100,616 07/01/2024 16,500 10/01/2024 01/01/2025 04/01/2025 07/01/2025 10/01/2025 Total $ 0 $ $ 0 < Amortization Schedule General Journal >
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $119,300. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) Related Information: Lease term Quarterly rental payments Economic life of asset 2 years (8 quarterly periods) $ 16,500 at the beginning of each period 2 years Fair value of asset $ 119,300 Implicit interest rate (Also lessee's incremental borrowing 12% rate) Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's fiscal year ends December 31. Complete this question by entering your answers in the tabs below. Amortization Schedule General Journal Prepare a lease amortization schedule for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's fiscal year ends December 31. Note: Round your intermediate and final answers to the nearest whole dollar. Enter all amounts as positive values. Payment Date Lease Payments Effective Interest Decrease in Balance Lease Balance 01/01/2024 $ 119,300 01/01/2024 S 04/01/2024 16,500 $ 16,500 0 $ 16,500 102,800 2,184 100,616 07/01/2024 16,500 10/01/2024 01/01/2025 04/01/2025 07/01/2025 10/01/2025 Total $ 0 $ $ 0 < Amortization Schedule General Journal >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2024. Edison purchased the
equipment from International Machines at a cost of $119,300.
Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1)
Related Information:
Lease term
Quarterly rental payments
Economic life of asset.
Fair value of asset
Implicit interest rate (Also
lessee's incremental borrowing
2
years (8 quarterly periods)
$ 16,500
at the beginning of each period
years
$ 119,300
2
12%
rate)
Required:
Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1,
2025. Edison's fiscal year ends December 31.
Complete this question by entering your answers in the tabs below.
Amortization
Schedule
General
Journal
Prepare a lease amortization schedule for Edison Leasing from the beginning of the lease through January 1, 2025. Edison's
fiscal year ends December 31.
Note: Round your intermediate and final answers to the nearest whole dollar. Enter all amounts as positive values.
Payment Date
Lease
Payments
Effective
Interest
Decrease in
Balance
Lease Balance
01/01/2024
01/01/2024
$
119,300
S
16,500 S
0 $
16,500
102,800
04/01/2024
07/01/2024
16,500
16,500
2,184
100,616
10/01/2024
01/01/2025
04/01/2025
07/01/2025
10/01/2025
Total
S
0 $
0 $
0
< Amortization Schedule
General Journal
>
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