15 Homework Assignment Saved Help Save & Exit Submi Check my work Edison Leasing

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15 Homework Assignment Saved Help Save & Exit Submi Check my work 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 Quarterly rental payments Economic life of asset 2 years (8 quarterly periods) $18,200 at the beginning of each period 2 years $131,591 12% Fair value of asset Implicit interest rate (Also 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, 2019. Edison's fiscal year ends December 31 6:18 AN RENG earch up

Explanation / Answer

Interest

@3%

Decrese in

balance

Journal Entries.

1

Fixed asset account...........Dr

To Lease Liability

(Being asset taken on lease )

Lease Amortization table Payment Date Opaning outstanding Lease payment

Interest

@3%

Decrese in

balance

Lease Balance 01/01/2018 $131591 $18200 0 $18200 $113391 04/01/2018 $113391 $18200 $3402 $14798 $98593 07/01/2018 $98593 $18200 $2958 $15242 $83351 10/01/2018 $83351 $18200 $2501 $15699 $67651 01/01/2019 $67651 $18200 $2030 $16170 $51481 04/01/2019 $51481 $18200 $1544 $16656 $34825 07/01/2019 $34825 $18200 $1045 $17155 $17670 10/01/2019 $17670 $18200 $530 $17670 0

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