E 154: Direct financing lease; lessor

LO155

Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2013. Edison purchased the equipment from International Machines at a cost of $112,080.

Required:

Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the inception of the lease through January 1, 2014. Edisons fiscal year ends December 31.

Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2013. Edison purchased the equipment from International Machines at a cost of $112,080. Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the inception of the lease through January 1, 2014. Edison's fiscal year ends December 31