3/14/2018 Assignment Print View Award. 10.00 polis (I) $310,000 and lists a cash

Question

3/14/2018 Assignment Print View Award. 10.00 polis (I) $310,000 and lists a cash selling price PVAD of SD (use n S1) (Use o selling price of SSF O Insight Machines on January 1, 2016. Insight Machines manufactured the equipment at cost of se appropriate factor(s) from the tables provided.) e priate factor(s) from th plate adjusting entries are made quarterly (Ey of S1. PV ot S1, EVA of S1. PVA of 3.YAO Related information: Quarterly lease payments Economic fe of asset Interest rate charged by the lessor 5 years (20 quarterly periods) $23,250 at Jan. 1. 2018, and a Mar, 31. June 30, Sept. 30, and Dec. 31 thereafter. yoars Required: 1. Prepare appropriate entries for Eye Deal to rec 2. Prepare appropriate entries to *ppropriate entries for Eye Deal to record the arrangement at its beginning. January 1, 2018, and on March 31, 2018. are appropriate entries for insight Machines to record the arrangement at its beginning. January 1, 2018, and on March 31, 2015 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare appropriate entries for Eve Deal to record the arrangement at its beginning, January 1, 2018, and on March 31, 2018. (ar no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction liat Journal entry worksheet Record the beginning of the lease for Eye Deal. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2018 Record entry Clear entry View general Journal

Explanation / Answer

Present value of lease payment : [PVAD 2%,20 * Lease payments ]

                   [16.67846*23250]

            = 387,774.24 [rounded o 387774]

In books of Eye Deal :

In books of Insight machines

Date Account Debit credit Jan 1 2018 Lease equipment 387,774 lease liability 387,774 [Being asset taken on lease] Jan 1 2018 Lease liability 23,250 cash 23,250 [first payment made] March 31 2018 Lease liability 15960 Interest expense [(387774-23250)*.02] 7290 cash 23250 [second lease payment made]

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