3.

Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machines manufactured the equipment at a cost of $91,000. Manufacturers Southern's fiscal year ends December 31. (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) $15,300 at the beginning of each period 2 years $112,446 103 Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate Required: 1. Show how International Machines determined the $15,300 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2018, and the second lease payment on April 1, 2018. Show how International Machines determined the $15,300 quarterly lease payments. (Round your intermediate and final answers to nearest whole dollar.) PV factors based on Table or Calculator function: PVAD of $1 PV of Lease 112,446 Lease Payment Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2018, and the second lease payment on April 1, 2018. (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.) View transaction list View journal entry worksheet Date Debit No General Journal Credit 1 January 01,2018 Lease receivable Cost of goods sold Sales revenue Equipment 2 January 01,2018 Cash Lease receivable |Cash | 3 April 01, 2018 Lease receivable Interest revenue