Exercise 15 35 Lessee journal entries Type B lease LO Supplements Manufacturers Southern leased high tech electronic equipment from Edison Leasing on January 1, 2016 Edison purchased the equipment from International Machines at a cost of $250,177 (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 $15,000 at Jan 1, 2016, and at Mar 31, June 30, Sept 30, and Dec 31 thereafter Economic life of asset 5 years Interest rate charged by the lessor 8 Respond to the question with the presumption that the guidance provided by the proposed Accounting Standards Update is being applied Required Prepare appropriate entries for Manufacturers Southern from the beginning of the lease through March 31, 2016 Appropriate adjusting entries are made quarterly (If no entry is required for a transaction event, select No journal entry required in the first account field )

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Exercise 15-35 Lessee; journal entries; Type B lease LO: Supplements Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2016. Edison purchased

Exercise 15-35 Lessee; journal entries; Type B lease LO: Supplements

Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2016. Edison purchased the equipment from International Machines at a cost of $250,177. (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	$15,000 at Jan. 1, 2016, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.
Economic life of asset	5 years
Interest rate charged by the lessor	8%
Respond to the question with the presumption that the guidance provided by the proposed Accounting Standards Update is being applied.

Required:

Prepare appropriate entries for Manufacturers Southern from the beginning of the lease through March 31, 2016. Appropriate adjusting entries are made quarterly. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)