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Please explain what I did wrong and show work. Exercise 15-7 (Algo) Sales-type lease with no selling profit; lessor (LO15-2] Edison Leasing leased high-tech electronic
Please explain what I did wrong and show work.
Exercise 15-7 (Algo) Sales-type lease with no selling profit; lessor (LO15-2] Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $114,321. (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 (Also lessee's incremental borrowing rate) 2 years (8 quarterly periods) $15,308 at the beginning of each period 2 years $114,321 8% Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's fiscal year ends December 31. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Amort Schedule General Journal Prepare the appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's fiscal year ends December 31. (Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less No Date General Journal Debit Credit 1 114,321 January 01, 2021 Lease receivable Equipment 114,321 2 15,300 January 01, 2021 Cash Lease receivable 15,300 3 April 01, 2021 15,300 Cash Lease receivable Interest receivable 13.320 1.980 x 4 July 01, 2021 Cash 15,300 13,586 Lease receivable Interest receivable x 1,714 OOO OO OOO OO OOO OO 5 15,300 October 01, 2021 Cash Lease receivable Interest receivable 13.858 1,442 6 1.442 December 31, 202 Interest receivable Interest revenue 1,442 X 7 15.300 January 01, 2022 Cash , Lease receivable Interest receivable 14,135 1,165Step by Step Solution
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