Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2016 Edison purchased the equipment from International Machines at a cost of $110,623. (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 Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate 2 years (8 quarterly periods) $15,300 at the beginning of each period 2 years $110,623 12% lessee's incremental borrowing rate Required Prepare a lease amortization schedule and appropriate entries lease through January 1, 2017. Edison's fiscal year ends December 31 for Edison Leasing from the inception of the Answer is complete and correct Payment Lease Payments Effective Interest Decrease in Balance Lease Balance 01/01/2016 01/01/2016 04/01/2016 07/01/2016 10/01/2016 01/01/2017 04/01/2017 07/01/2017 10/01/2017 Total $110,623 95,323 5,3002,86012,44082,883 70,069 56,871 43,277 29,275 14,853 0 15,300 ,0095 15,300 15,300 15,300 15,300 15,300 15,300 $ 122,400 2,48612,814 13,198 70613,594 14,002 7814,422 14,853 11,7770,623 2,102 1,298 447 Prepare the appropriate entries for Edison Leasing from the inception of the lease through January 1, 2017 Edison's fiscal year ends December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete Date General Journal Debit Credit 110,623 January 01, 2016 Leased equipment Lease payable 10,623 2 January 01, 2016 Lease payabl 5,300 Cash 15,300 erest payable Lease payable 3 April 01, 2016 Int 2,860 2,860 4 July 01, 2016 Interest payable 2,486 Lease payable 2,486 2,102 October 01, 2016 Interest expense Lease payable 2,102 6 December 31, 201 Interest expense 1,706 Interest payable 1,706 January 01, 2017 Interest expense Interest payable 1,706 13,594 Cash 15,300 Journal entry worksheet 2 4 6 7 Accumulated depreciation Record the lease Airplanes Building Cash Cost of goods sold Deferred aain on sale-leaseback Note: Enter debits bef Date Debit Credit January 01, 2016 110,623 110,623 Record entry Clear entry View general journal