Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2021. Insight Machines manufactured...

Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2021. Insight Machines manufactured the equipment at a cost of $350,000 and lists a cash selling price of $437,810. Appropriate adjusting entries are made quarterly. (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	5 years (20 quarterly periods)
Quarterly lease payments	$26,250 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter
Economic life of asset	5 years
Interest rate charged by the lessor	8%

Required:
1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2018. Insight Machines manufactured...

Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2018. Insight Machines manufactured the equipment at a cost of $350,000 and lists a cash selling price of $437,810. Appropriate adjusting entries are made quarterly. (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 5 years (20 quarterly periods) Quarterly lease payments $26,250 at Jan. 1, 2018,...

Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2018. Insight Machines manufactured...

Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2018. Insight Machines manufactured the equipment at a cost of $360,000 and lists a cash selling price of $492,102. Appropriate adjusting entries are made quarterly. (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 5 years (20 quarterly periods) Quarterly lease payments $27,000 at Jan. 1, 2018,...

Problem 3 Hood leased equipment from Rowe on January 1, 2021. Rowe manufactured the equipment at...

Problem 3 Hood leased equipment from Rowe on January 1, 2021. Rowe manufactured the equipment at a cost of $200,000. Both lessee and lessor have December 31 year ends. Lease terms: Lease term 5 years, (20 quarterly periods) Quarterly payments, $15,000 beginning Jan 1, Mar 31, June 30, Sept.,30 and Dec. 31. Economic life of asset, 5 years Interest rate charged by lessor, 10% Depreciation is recorded quarterly Required: 1. Prepare appropriate journal entries for the lessee at its beginning,...

Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machines manufactured...

Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machines manufactured the equipment at a cost of $96,000. Manufacturers Southern's fiscal year ends December 31. (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) Quarterly rental payments $16,500 at the beginning of each period Economic life of asset 2...

Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machines manufactured...

Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machines manufactured the equipment at a cost of $86,000. Manufacturers Southern's fiscal year ends December 31. (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) Quarterly rental payments $15,000 at the beginning of each period Economic life of asset 2...

Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machines manufactured...

Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machines manufactured the equipment at a cost of $104,000. Manufacturers Southern's fiscal year ends December 31. (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 term2 years (8 quarterly periods) Quarterly rental payments$18,200 at the beginning of each period Economic life of asset2 years Fair value...

6. Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines...

6. Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $202,000. Manufacturers Southern's fiscal year ends December 31. (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) Quarterly rental payments $16,700 at the beginning of each period Economic life of asset...

Eastern Edison Company leased equipment from Low-Tech Company on January 1, 2021. Low-Tech manufactured the equipment...

Eastern Edison Company leased equipment from Low-Tech Company on January 1, 2021. Low-Tech manufactured the equipment at a cost of $120,000. Annual payments are $12,590 with the first payment on January 1, 2021. Other information: Lease term 3 years Useful life of asset 10 years Fair value of equipment $120,000 Interest rate 5% Present value of an ordinary annuity of $1 (n = 3, i=5%) 2.72325 Present value of an annuity due of $1 (n=3, i=5%) 2.85941 Required: Prepare appropriate...

Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronometers...

Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronometers at a cost of $270,000. The chronometers have a fair value of $309,337. Appropriate adjusting entries are made quarterly. (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 5 years (20 quarterly periods) Quarterly lease payments $ 19,639 at Jan. 1, 2021, and...

On January 1, 2021, Osiris Inc. leased manufacturing equipment from Giza Leasing for a four-year period...

On January 1, 2021, Osiris Inc. leased manufacturing equipment from Giza Leasing for a four-year period ending December 31, 2021, at which time possession of the leased asset will revert back to Giza. The equipment cost Giza $206,092 and has an expected economic life of five years. Giza expects the residual value at December 31, 2021, to be $25,000. Negotiations led to Osiris guaranteeing a $35,000 residual value. Equal payments under the lease are $50,000 and are due on December...

Subjects