Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machines manufactured the equipment at a cost of $98,000. Manufacturers Southern's fiscal year ends December 31. (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 2 years (8 quarterly periods) $17,000 at the beginning of each period 2 years $124,940 10% Required: 1. Show how International Machines determined the $17,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2018, and the second lease payment on April 1, 2018 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how International Machines determined the $17,000 quarterly lease payments. (Round your intermediate and final answers to nearest whole dollar) PV factors based on Table or Calculator function: PV of Lease Lease Payment NELOLE ARRUIMALAUI. Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate 2 years (8 quarterly periods) $17,000 at the beginning of each period 2 years $124,940 104 Required: 1. Show how International Machines determined the $17,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2018, and the second lease payment on April 1, 2018 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how International Machines determined the $17,000 quarterly lease payments. (Round your intermediate and final answers to nearest whole dollar.) PV factors based on Table or Calculator function: PV of Lease Lease Payment Required Required 2 > Required 1 Required 2 Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2018, and the second lease payment on April 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.) View transaction list Journal entry worksheet 1 2 3 Record the lease Note: Enter debits before credits General Journal Debit Credit Date January 01, 2018 No journal entry required Accumulated depreciation Amortization expense Record entry Building View general Journal Required 1 Required 2 Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2018, and the second lease payment on April 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.) View transaction list Journal entry worksheet 2 3 Record cash received Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2018 No journal entry required Accumulated depreciation Amortization expense Record entry Building View general journal Required 1 Required 2 Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2018, and the second lease payment on April 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermediate and final answers to nearest whole dollar.) View transaction list Journal entry worksheet
