Baillie Power leased high$-$tech electronic equipment from Courtney Leasing on January $1,2024.$ Courtney purchased the equipment from Doane Machines at a cost of $$251,000,$ its fair value.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

$4$

points

$03$:$44$:$30$

References

$\backslash$table$[[$Related Information:,$],[$Lease term,$\backslash$table$[[2$ years $(8$ quarterly periods$)],[$on January $1,2024,$ and on March $31,$ June $30,$ September $30,$ and$],[$$$16,000$ December $31$ thereafter$]]],[\backslash$table$[[$Quarterly lease payments$],[$Economic life of asset$],[$Interest rate charged by the lessor$]],\backslash$table$[[$$$16,000$ December $31$ thereafter$],[5$ years$],[4\%]]]]$

Required:

Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December $31,2024.$ December $31$ is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.