High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the optionto renew the lease at the end of two years for an additional three years for $8,000 per quarter. Adventures purchased theequipment at a cost of $198,375.Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1)Related Information:Lease termLease renewal option for an additionalQuarterly lease paymentsEconomic life of assetInterest rate charged by the lesson2. Prepare an amortization schedule for the term of the lease.Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.DateJanuary 1, 2024March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 2025December 31 2025LeasePayments2 years (8 quarterly periods)3 years at $8,000 per quarter$ 15,000 at January 1, 2024, and at March 31, June 30, September 30, andDecember 31 thereafter.5 yearsEffectiveInterestDecrease inBalanceBalance

A lease is defined as a contractual agreement incorporated between two business entities where one…

High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option to renew the lease at the end of two years for an additional three years for $8,000 per quarter. Adventures purchased the equipment at a cost of $198,375. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Related Information: Lease term Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lesson 2 years (8 quarterly periods) 3 years at $8,000 per quarter $ 15,000 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years 8% 2. Prepare an amortization schedule for the term of the lease.

High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option to renew the lease at the end of two years for an additional three years for $8,000 per quarter. Adventures purchased the equipment at a cost of $198,375. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Related Information: Lease term Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lesson 2 years (8 quarterly periods) 3 years at $8,000 per quarter $ 15,000 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years 8% 2. Prepare an amortization schedule for the term of the lease.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below.] High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end of two years for an additional three years for $8,100 per quarter. Adventures purchased the equipment at a cost of $196,141. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lessor 2 years (8 quarterly periods) 3 years at $8,100 per quarter $15,100 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. 5 years 10%
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 $139,107. 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 2 years (8 quarterly periods) Quarterly rental payments $ 18,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $ 139,107 Implicit interest rate (Also lessee’s incremental borrowing rate) 4% 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
High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end of two years for an additional three years for $9,300 per quarter. Adventures purchased the equipment at a cost of $219,824. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term 2 years (8 quarterly periods)Lease renewal option for an additional 3 years at $9,300 per quarterQuarterly lease payments $ 16,300 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.Economic life of asset 5 yearsInterest rate charged by the lessor 8%Prepare an amortization schedule for the term of the lease.
High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end of two years for an additional three years for $9,300 per quarter. Adventures purchased the equipment at a cost of $219,824. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term 2 years (8 quarterly periods)Lease renewal option for an additional 3 years at $9,300 per quarterQuarterly lease payments $ 16,300 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.Economic life of asset 5 yearsInterest rate charged by the lessor 8% Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2021. Appropriate adjusting entries are made quarterly. (If no entry is required for a transaction/event, select "No journal entry required" in the…
! Required information [The following information applies to the questions displayed below.] High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end of two years for an additional three years for $8,100 per quarter. Adventures purchased the equipment at a cost of $196,141. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lessor 2 years (8 quarterly periods) 3 years at $8,100 per quarter $15,100 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. 5 years 10% Required: 1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2021. Appropriate adjusting entries are made quarterly. (If no entry is required for a…
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 $135,990. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA 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) years $ 18,200 at the beginning of each period 2 $ 135,990 Implicit interest rate (Also Fair value of asset lessee's incremental borrowing rate) 8% 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…
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 $131,379. 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) $ 17,000 2 at the beginning of each period years $ 131,379 Implicit interest rate (Also 4% 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 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. 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…
Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2024. International Machines manufactured the equipment at a cost of $92000. Manufacturers Southern's fiscal year ends December 31. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $.1) Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate 2 $ 18,000 2 $ 134,496 8% years (8 quarterly periods) at the beginning of each period years Required: 1. Show how International Machines determined the $18,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning. January 1, 2024, and the second lease payment on April 1, 2024. PV factors based on Table or Calculator function PV of Loase Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how International…
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…
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 $135.990. Note: Use tables, Excel, or a financial calculator. (EV of $1., PV of $1. EVA 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 rate) 2 years (8 quarterly periods) at the beginning of each period years $ 18,200 2 $ 135,990 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. Amortization General Schedule Journal Complete this question by entering your answers in the tabs below. Record the appropriate entries for Manufacturers Southern from the beginning of…
Required information [The following information applies to the questions displayed below.] High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option to renew the lease at the end of two years for an additional three years for $9,000 per quarter. Adventures purchased the equipment at a cost of $212,218. Note: Use Excel, or a financial calculator. Related Information: Lease term 2 years (8 quarterly periods) Lease renewal option for an additional 3 years at $9,000 per quarter Quarterly lease payments Economic life of asset $ 16,000 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years Interest rate charged by the lessor 10% Required: 1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2024. Appropriate adjusting entries are made quarterly.