Exercise 15-7 (Static) Sales-type lease with no selling profit; lessor [LO15-2]

Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $112,080. (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 rental payments	$15,000 at the beginning of each period
Economic life of asset	2 years
Fair value of asset	$112,080
Implicit interest rate	8%
(Also lessees incremental borrowing rate)

Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edisons fiscal year ends December 31.

Prepare the appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edisons fiscal year ends December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar.)

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Journal entry worksheet

• Record the lease.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01, 2021

Journal entry worksheet

• Record cash received.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01, 2021

Journal entry worksheet

• Record cash received.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
April 01, 2021

Journal entry worksheet

• Record cash received.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 01, 2021

Journal entry worksheet

• Record cash received.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
October 01, 2021

Journal entry worksheet

• Record accrued interest.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31, 2021

Journal entry worksheet

• Record cash received.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01, 2022