Manufacturers Southern leased high tech electronic equipment from Edison Leasing on January 1, 2013 Edison purchased the equipment from International Machines at a cost of $112,446 (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 $15,300 at the beginning of each period Economic life of asset 2 years Fair value of asset $112,446 Implicit interest rate 10 (Also lessees incremental borrowing rate) Required Prepare a lease amortization schedule for the term of the lease Also record the appropriate entries for Manufacturers Southern from the inception of the lease through January 1, 2014 Depreciation is recorded at the end of each fiscal year (December 31) on a straight line basis (If no entry is required for a particular transaction, select No journal entry required in the first account field Enter your answers in whole dollars )

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Posted on Sep 30, 2024

Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2013. Edison purchased the equipment from International Machines at a cost of $112,446.

Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2013. Edison purchased the equipment from International Machines at a cost of $112,446. (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	$15,300 at the beginning of each period
Economic life of asset	2 years
Fair value of asset	$112,446
Implicit interest rate	10%
(Also lessees incremental borrowing rate)

Required:

Prepare a lease amortization schedule for the term of the lease. Also record the appropriate entries for Manufacturers Southern from the inception of the lease through January 1, 2014. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)