newton labs leased chronometers from brookline instruments on January 1, 2021. brookline

Chapter 15 Leases Problem 15-14 (slightly modified): Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronometers at a cost of $200,000. Appropriate adjusting entries are made quarterly. Lease Information Lease term: 5 years (20 quarterly periods) Economic life of the asset: 6 years Quarterly Payments: $14,547 on Jan 1, 2021, and Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter Interest rate: 8% 1. Find the present value of the lease payments. 2. Prepare journal entries for Newton Labs on January 1, 2021 and March 31, 2021. 3. Prepare journal entries for Brookline Instruments on January 1, 2021 and March 31, 2021