High Time Tours leased rock$-$climbing equipment from Adventures Leasing on January $1,2024.$ Adventures purchased the equipment at a cost of $$206,858.$

Related Information:

Lease term $5$ years $(20$ quarterly periods$)$

Quarterly lease payments $ $15,500$ at January $1,2024,$ and at March $31,$ June $30,$ September $30,$ and December $31$ thereafter.

Economic life of asset $5$ years

Interest rate charged by the lessor $8\%$

Required:

$1.$ Prepare an amortization schedule for the term of the lease. $($worth $5$ points$)$

$2.$ Prepare appropriate entries for High Time Tours from the beginning of the lease through December, $31,2024($Janaury $1,$ March $31,$ September $31,$ and December $31$ entries$).($worth $15$ points$)$

$3.$ Explain the total affects the lease will have on the financial statements. $($worth $3$ points$)$