7.

Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $112,446. (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 Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 103 Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern. (Enter all amounts as positive values.) Payment DateaynIntervt Sslancesac Lease Effective Decrease in Lease Balance Interest Balance $112,446 01/01/2018 $15,300 $15,300 04/01/2018 15,300 07/01/2018 1001/2018 01/01/2019 04/01/2019 07/01/2019 10/01/2019 0 S5,300 $30,600 S Total Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2019. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to nearest whole dollar.) Show less No Date General Journal Debit Credit 1January 01, 2018 Right-of-use asset 112,446 112,446 Lease payable 2January 01, 2018 Lease payable 15,300 Cash 15,300 3April 01, 2018 Interest expense Lease payable Cash 15,300 4July 01, 2018 Interest expense Lease payable Cash 15,300 5October 01, 2018 Interest expense Lease payable Cash 15,300 December 31ntest expense 2018 t payable 56,223 2018 Amortization e expense Right-of-use asset 56,223 8 January 01, 2019 Interest payable Lease payable Cash 15,300