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 2 years (8 quarterly periods) $ 16,500 Economic life of asset 2 at the beginning of each period 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 $ 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 $ 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 2 years (8 quarterly periods) $ 16,500 Economic life of asset 2 at the beginning of each period 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 $ 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 $ 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
years
2 years (8 quarterly periods)
$ 16,500 at the beginning of each period
2
$ 119,300
Implicit interest rate (Also
12%
Fair value of asset
lessee's incremental borrowing
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 General
Schedule
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
$
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 $
0
Amortization Schedule
General Journal
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education