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Please help me with the journal entry #7 which i did it wrong, thanks. Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January
Please help me with the journal entry #7 which i did it wrong, thanks.
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $127,650. (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 2 years (8 quarterly periods) Quarterly rental payments $16,800 at the beginning of each period Economic life of asset 2 years Fair value of asset $127,650 Implicit interest rate 6% (Also lessee's incremental borrowing rate) Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis. Complete this question by entering your answers in the tabs below. Amort Schedule General Journal Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. (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.) Amort Schedule General Journal Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern. (Round your intermedia calculations and final answers to the nearest whole dollar) Payment Date Lease Payments Effective Interest Decrease in Balance Lease Balance 127,650 01/01/2021 $ 16,800 $ 16,800 110,850 04/01/2021 1,663 1,436 1,205 15,137 15,364 07/01/2021 $ 10/01/2021 $ 15,595 15,829 95,713 80,349 64,754 48,925 32,859 16,552 01/01/2022 971 16,800 16,800 16,800 16,800 16,800 16,800 16,800 134,400 $ 04/01/2022 734 $ 07/01/2022 493 $ 16,066 16,307 16,552 127,650 10/01/2022 248 $ 0 Total $ $ 6,750 Amort Schedule General Journal Cash 16,800 4 July 01, 2021 Interest expense 1,436 15,364 Lease payable Cash 16,800 5 October 01, 2021 Interest expense Lease payable 1,205 15,595 Cash 16,800 6 971 December 31, 202 Interest expense Interest payable 971 7 15,595 X December 31, 202 Amortization expense Right-of-use asset 15,595 8 971 January 01, 2022 Interest payable Lease payable 15,829 Cash 16,800Step by Step Solution
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