Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help. Please show work I need to understand how to do it. thanks Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on
I need help. Please show work I need to understand how to do it. thanks
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $135,990. (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 Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 2 years (8 quarterly periods) $18,2ee at the beginning of each period 2 years $135,990 8% Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis. Answer is not complete. Complete this question by entering your answers in the tabs below. Amort Schedule General Journal Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. (Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less A No General Journal Debit Credit 1 Date January 01, 2021 Right-of-use asset Lease payable 135,990 135,990 2 18,200 January 01, 2021 Lease payable Cash 18,200 3 OOO OOO OOOO April 01, 2021 Interest expense 2.356 15,844 Lease payable Cash 18,200 4 4 July 01, 2021 Interest expense Lease payable Cash 2,039 16,161 18,200 5 5 1,716 October 01, 2021 Interest expense Lease payable Cash 16,484 18,200 6 December 31, 202 Interest expense Lease payable Cash 1,386 16,814 X x x 18,200 x 7 16,999 December 31, 202 Amortization expense Right-of-use asset 16,999 8 January 01, 2022 Cost of goods sold Amortization expense x xStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started