High Time Tours leased rock climbing equipment from Adventures Leasing on January 1, 2021 High Time has the option to renew the lease at the end of two years for an additional three years for $8,300 per quarter Adventures purchased the equipment at a cost of $203,852 (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) Lease renewal option for an additional 3 years at $8,300 per quarter Quarterly lease payments $ 15,300 at Jan 1, 2021, 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 Required 1 Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2021 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 Round your intermediate and final answers to nearest whole dollar )

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Posted on Aug 17, 2024

High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end

High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end of two years for an additional three years for $8,300 per quarter. Adventures purchased the equipment at a cost of $203,852. (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)
Lease renewal option for an additional		3 years at $8,300 per quarter
Quarterly lease payments	$	15,300 at Jan. 1, 2021, 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%

Required: 1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2021. 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. Round your intermediate and final answers to nearest whole dollar.)