Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Newton Labs leased chronometers from Brookline Instruments on January 1, 2018. Brookline Instruments manufactured the chronometers at a cost of $270,000. The chronometers have a

image text in transcribed
image text in transcribed
Newton Labs leased chronometers from Brookline Instruments on January 1, 2018. Brookline Instruments manufactured the chronometers at a cost of $270,000. The chronometers have a fair value of $351,000. Appropriate adjusting entries are made quarterly. (EY of $1. PV of S1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease tern Quarterly lease paynents Economic life of asset Estimated residual value of chronometers at end of lease term Interest rate charged by the lessor 5 years (20 quarterly periods) $19,639 at Jan. 1. 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 6 years $15, 158 124 Required: 1. Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018 2. Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2018, and on March 31, 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 View journal entry worksheet No General Journal Debit Credit 1 Date January 01, 2018 Right-of-use asset Lease payable Required 1 Required 2 Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2018, and on March 31, 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.) No General Journal Debit Credit 1 Date January 01, 2018 Right-of-use asset Lease payable 2 January 01, 2018 Lease payable Cash 19,639 19,639 3 March 31, 2018 Interest expense Lease payable Cash o 4 March 31, 2018 Amortization expense Right-of-use asset

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Auditing And Assurance

Authors: Louise Kelly

1st Edition

978-1908199362

More Books

Students also viewed these Accounting questions

Question

=+b) Find the 90% confidence interval for the mean.

Answered: 1 week ago