Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. 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 and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2019. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis.

• Amort Schedule

Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern from the beginning of the lease through January 1, 2019. Depreciation 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 nearest whole dollar. Enter all amounts as positive values.)

Payment Date	Lease Payments	Effective Interest	Decrease in Balance	Lease Balance
01/01/2018
04/01/2018
07/01/2018
10/01/2018
01/01/2019
04/01/2019
07/01/2019
10/01/2019
Total	$0	$0	$0

• General Journal

Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2019. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to nearest whole dollar.)

Journal entry worksheet

• Record the beginning of the lease for Manufacturers Southern.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01, 2018

• Record lease payment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01, 2018

• Record lease payment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
April 01, 2018

• Record lease payment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 01, 2018

• Record lease payment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
October 01, 2018

• Record accrued interest.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31, 2018