Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2016 Edison purchased the equipment from International Machines at a cost of $119,292. (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 $15,700 at the beginning of each period Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 2 years (8 quarterly periods) 2 years $119,292 6% 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, 2017. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis Lease Payments Interest Expense Decrease in Balance Lease Balance Payment Date $ 119,292 01/01/2016 04/01/2016 07/01/2016 10/01/2016 01/01/2017 04/01/2017 07/01/2017 10/01/2017 Totals 15,700 $ 15,00103,592 15,700 15,700 15,700 15,700 15,700 15,700 $125,600 S 15,700 2,860 14,14689,446 2,486 x 13,214 2,102 x 13,598 1,706 x 13,994 1,298 x 14,402 878 x 14,822 76,232 62,634 48,640 34,238 19,416 19,416 3,716 7,614 $ 99,876 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Record the appropriate entries for Manufacturers Southern from the inception of the lease through January 1, 2017. 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.) View transaction list Journal entry worksheet 2 4 6 7 8 Record the lease No journal entry required Accumulated depreciation Airplanes Building Cash Note: Enter debits be Date Debit Credit January 01, 2016 Record entry Clear entry View general journal Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2016 Edison purchased the equipment from International Machines at a cost of $119,292. (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 $15,700 at the beginning of each period Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 2 years (8 quarterly periods) 2 years $119,292 6% 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, 2017. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis Lease Payments Interest Expense Decrease in Balance Lease Balance Payment Date $ 119,292 01/01/2016 04/01/2016 07/01/2016 10/01/2016 01/01/2017 04/01/2017 07/01/2017 10/01/2017 Totals 15,700 $ 15,00103,592 15,700 15,700 15,700 15,700 15,700 15,700 $125,600 S 15,700 2,860 14,14689,446 2,486 x 13,214 2,102 x 13,598 1,706 x 13,994 1,298 x 14,402 878 x 14,822 76,232 62,634 48,640 34,238 19,416 19,416 3,716 7,614 $ 99,876 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Record the appropriate entries for Manufacturers Southern from the inception of the lease through January 1, 2017. 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.) View transaction list Journal entry worksheet 2 4 6 7 8 Record the lease No journal entry required Accumulated depreciation Airplanes Building Cash Note: Enter debits be Date Debit Credit January 01, 2016 Record entry Clear entry View general journal