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Manufacturers Western leased high-tech electronic equipment from National Machines on January 1, 2016. National Machines manufactured the equipment at a cost of $163,422. Related Information:
Manufacturers Western leased high-tech electronic equipment from National Machines on January 1, 2016. National Machines manufactured the equipment at a cost of $163,422. Related Information: Lease term 3 years (12 quarterly periods) Quarterly rental payments $20,000 at the beginning of each period Economic life of the asset 3 years Fair value of the asset $205,052 12% Implicit interest rate (Also lessee's incremental borrowing rate) Required: Prepare appropriate entries for National Machines to record the lease at its inception, January 1, 2016, and the second rental payment on April 1, 2016
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