Edison Leasing leased high-tech electronic equipment to Manufacturers Southern o

Question

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 $124.782. (EV of$i. PV of S1. EVA of S1. PVA of $1 FVAD of S1 and PVAD of S) (Use appropriete factor(s) from the tables provided.) 10 points Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 2 years (8 quarterly periods) $16,700 at the beginning of each period 2 years $124,782 8% eBook Hint References 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 Complete this question by entering your answers in the tabs below. Amort Schedule General Journal Prepare a lease amortization schedule for Edison Leasing from the beginning of the lease through January 1, 2019. Edison's fiscal vear ends December 3i. (Enter your answers in whole doliars and not in millions. Round vour intermediate and fi

Explanation / Answer

quarterly rate : 8/4 = 2%

2

Amortiation schedule Period Lease payment Interest Principal paid carrying value Jan 1 2018 16700 124782-16700=108082 1 april2018 16700 108082*.02=2162 16700-2162=14538 108082-14538= 93544 1 july2018 16700 93544*.02= 1871 16700-1871= 14829 93544-14829= 78715 1 oct2018 16700 78715*.02= 1574 16700-1574=15126 78715-15126= 63589 1 jan2019 16700 63589*.02= 1272 16700-1272= 15428 63589-15428= 48161 1 april 2019 16700 48161*.02= 963 16700-963= 15737 48161-15737= 32424 1 july 2019 16700 32424*.02= 648 16700-648= 16052 32424-16052= 16372 1 oct 2019 16700 16372*.02= 327 16700-372= 16372 0

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