Question
In: Accounting
Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1, 2018. Kolten purchased the...
Grichuk Power leased high-tech electronic equipment from Kolten
Leasing on January 1, 2018. Kolten purchased the equipment from
Wong Machines at a cost of $255,500, its fair value. (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 lease payments | $20,500 at Jan. 1, 2018, 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:
Prepare a lease amortization schedule and appropriate entries for
Grichuk Power from the commencement of the lease through December
31, 2018. December 31 is the fiscal year end for each company.
Appropriate adjusting entries are recorded at the end of each
quarter.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1, 2018. Kolten purchased the...
Grichuk Power leased high-tech electronic equipment from Kolten
Leasing on January 1, 2018. Kolten purchased the equipment from
Wong Machines at a cost of $250,000, its fair value. (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
lease payments $15,000 at Jan. 1, 2018, and at Mar. 31, June 30,
Sept. 30, and...
Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1, 2018. Kolten purchased the...
Grichuk Power leased high-tech electronic equipment from Kolten
Leasing on January 1, 2018. Kolten purchased the equipment from
Wong Machines at a cost of $253,500, its fair value. (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 lease payments
$18,500 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and...
Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the...
Baillie Power leased high-tech electronic equipment from
Courtney Leasing on January 1, 2021. Courtney purchased the
equipment from Doane Machines at a cost of $253,500, its fair
value. (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 lease payments
$18,500 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and...
Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the...
Baillie Power leased high-tech electronic equipment from
Courtney Leasing on January 1, 2021. Courtney purchased the
equipment from Doane Machines at a cost of $254,000, its fair
value. (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 lease
payments
$19,000 at Jan.
1, 2021, and at Mar. 31, June 30, Sept. 30, and...
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 $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...
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...
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