20) High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end of two years for an additional three years for $8,500 per quarter. Adventures purchased the equipment at a cost of $206,858. (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)
Lease renewal option for an additional		3 years at $8,500 per quarter
Quarterly lease payments	$	15,700 at Jan. 1, 2021, 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%

Problem 15-12 (Algo) Part 1

Required: 1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2021. Appropriate adjusting entries are made quarterly. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.)

• 1 Record the lease payment for High Time.

• 2 Record the lease payment for High Time.

• 3 Record the lease and interest payment for High Time.

• 4 Record amortization of the right-of-use asset for High Time.

2. Prepare an amortization schedule for the term of the lease. (Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.)

Date	Lease Payments	Effective Interest	Decrease in Balance	Balance
Jan. 1, 2021
Mar. 31, 2021
June 30, 2021	15,700
Sept. 30, 2021	15,700
Dec. 31, 2021	15,700
Mar. 31, 2022	15,700
June 30, 2022	15,700
Sept. 30, 2022	15,700
Dec. 31, 2022
Mar. 31, 2023
June. 30, 2023	8,500
Sept. 30, 2023	8,500
Dec. 31, 2023	8,500
Mar. 31, 2024	8,500
June 30, 2024	8,500
Sept. 30, 2024	8,500
Dec. 31, 2024	8,500
Mar. 31, 2025	8,500
June 30, 2025	8,500
Sept. 30, 2025	8,500