High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2018. High Time has the option to renew the lease at the end of two years for an additional three years for $8,400 per quarter. Adventures purchased the equipment at a cost of $210,010.(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 $8,400 per quarter
Quarterly lease payments	$15,400 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	6%

Required:

1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2018. Appropriate adjusting entries are made quarterly. 2. Prepare an amortization schedule for the term of the lease.

Prepare an amortization schedule for the term of the lease. (Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.) Date Lease PaymentsEffective Interest Decrease in Balance Balance 199,567 15,400 Jan. 1, 2018 0 15,400 Mar. 31, 2018 15,400 June 30, 2018 15,400 15,400 Sept. 30, 2018 Dec. 31, 2018 15,400 Mar. 31, 2019 15,400 15,400 June 30, 2019 Sept. 30, 2019 15,400 Dec. 31, 2019 8,400 Mar. 31, 2020 June 30, 2020 8,400 Sept. 30, 2020 8,400 Dec. 31, 2020 8,400 Mar. 31, 2021 8,400 June 30, 2021 8,400 Sept. 30, 2021 8,400 Dec. 31, 2021 8,400 Mar. 31, 2022 8,400 June 30, 2022 8,400 Sept. 30, 2022 8,400 Required 1 Required 2