Question
In: Accounting
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the...
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $125,370. (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 years Fair value of asset $125,370 Implicit interest rate 6% (Also lessee’s incremental borrowing rate) Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2019. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the...
Manufacturers Southern leased high-tech electronic equipment
from Edison Leasing on January 1, 2018. Edison purchased the
equipment from International Machines at a cost of $117,772. (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
$15,500 at the beginning of each
period
Economic life of asset
2 years
Fair value of asset...
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the...
Manufacturers Southern leased high-tech electronic equipment
from Edison Leasing on January 1, 2018. Edison purchased the
equipment from International Machines at a cost of $127,650. (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 $16,800 at the beginning of each period Economic
life of asset 2 years Fair value of asset...
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the...
Manufacturers Southern leased high-tech electronic equipment
from Edison Leasing on January 1, 2018. Edison purchased the
equipment from International Machines at a cost of $127,024. (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
$17,000 at the beginning of each
period
Economic life of asset
2 years
Fair value of asset...
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the...
Manufacturers Southern leased high-tech electronic equipment
from Edison Leasing on January 1, 2018. Edison purchased the
equipment from International Machines at a cost of $117,772.
Related Information:
Lease term
2 years (8
quarterly periods)
Quarterly rental
payments
$15,500 at the
beginning of each period
Economic life of
asset
2 years
Fair value of
asset
$117,772
Implicit
interest rate
6%
(Also lessee’s incremental borrowing rate)
Prepare a lease amortization schedule for the term of the lease
for Manufacturers Southern from the...
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the...
Manufacturers Southern leased high-tech electronic equipment
from Edison Leasing on January 1, 2018. Edison purchased the
equipment from International Machines at a cost of $125,370. (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 years
Fair value of asset...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the...
Edison Leasing leased high-tech electronic equipment to
Manufacturers Southern on January 1, 2018. Edison purchased the
equipment from International Machines at a cost of $131,591. (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
$18,200 at the beginning of each
period
Economic life of asset
2 years
Fair value of asset...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the...
Edison Leasing leased high-tech electronic equipment to
Manufacturers Southern on January 1, 2018. Edison purchased the
equipment from International Machines at a cost of $139,107. (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
$18,000 at the beginning of each
period
Economic life of asset
2 years
Fair value of asset...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the...
Edison Leasing leased high-tech electronic equipment to
Manufacturers Southern on January 1, 2018. Edison purchased the
equipment from International Machines at a cost of $110,623. (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
$15,300 at the beginning of each period
Economic life of asset
2 years
Fair value of asset...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the...
Edison Leasing leased
high-tech electronic equipment to Manufacturers Southern on January
1, 2018. Edison purchased the equipment from International Machines
at a cost of $119,300. (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 years
Fair value of
asset...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the...
Edison Leasing leased high-tech electronic equipment to
Manufacturers Southern on January 1, 2018. Edison purchased the
equipment from International Machines at a cost of $123,651. (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
$16,000 at the
beginning of each period
Economic life of
asset
2 years
Fair value of
asset...
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