Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $136,768. 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 2 years (8 quarterly periods) $ 18,000 Economic life of asset 2 at the beginning of each period years Fair value of asset $ 136,768 Implicit interest rate (Also lessee's incremental borrowing rate) 6% Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1; 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. Complete this question by entering your answers in the tabs below. Amortization Schedule General Journal Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern. Note: Round your intermediate calculations 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 04/01/2024 07/01/2024 10/01/2024 01/01/2025 04/01/2025 07/01/2025
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $136,768. 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 2 years (8 quarterly periods) $ 18,000 Economic life of asset 2 at the beginning of each period years Fair value of asset $ 136,768 Implicit interest rate (Also lessee's incremental borrowing rate) 6% Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1; 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. Complete this question by entering your answers in the tabs below. Amortization Schedule General Journal Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern. Note: Round your intermediate calculations 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 04/01/2024 07/01/2024 10/01/2024 01/01/2025 04/01/2025 07/01/2025
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2024. Edison purchased the
equipment from International Machines at a cost of $136,768.
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)
2
$ 18,000 at the beginning of each period
years
$ 136,768
Implicit interest rate (Also
Fair value of asset
lessee's incremental borrowing
rate)
6%
Required:
Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through
January 1; 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis.
Complete this question by entering your answers in the tabs below.
Amortization
Schedule
General
Journal
Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern.
Note: Round your intermediate calculations 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
04/01/2024
07/01/2024
10/01/2024
01/01/2025
04/01/2025
07/01/2025
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