Exercise 15-16 Lessee; operating lease [LO15-4]

Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1, 2018. Kolten purchased the equipment from Wong Machines at a cost of $260,000, its fair value. (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)
Quarterly lease payments	$25,000 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.
Economic life of asset	5 years
Interest rate charged by the lessor	12%

Required: Prepare a lease amortization schedule and appropriate entries for Grichuk Power from the commencement of the lease through December 31, 2018. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.

• Record the beginning of the lease for Grichuk Power. Jan 1 2018
• Record the quarterly rental paid by Grichuk Power. Jan 1 2018
• Record the quarterly rental and interest paid by Grichuk Power. March 31st 2018
• Record the amortization of Right-of-use equipment for Grichuk Power. March 31st 2019

Complete this question by entering your answers in the tabs below Amort General Schedule ournal Prepare a lease amortization schedule for the term of the lease for Grichuk Power from the commencement of the lease through December 31, 2018. December 31 is the fiscal year end for each company. (Enter all amounts as positive values.) Lease Effective In Lease Balance Payment Date Payments Interest Balance $180,757 01/01/2018 04/01/2018 07/01/2018 10/01/2018 01/01/2019 04/01/2019 07/01/2019 10/01/2019 Total Amort Schedule General Journal>