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Please help with Requirement 2's journal entries for #1 and #3. Newton Labs leased chronometers from Brookline Instruments on January 1, 2018. Brookline Instruments manufactured
Please help with Requirement 2's journal entries for #1 and #3.
Newton Labs leased chronometers from Brookline Instruments on January 1, 2018. Brookline Instruments manufactured the chronometers at a cost of $180,000. The chronometers have a fair value of $234,000. Appropriate adjusting entries are made quarterly. (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 Lease term Quarterly lease payments 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) S13,092 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec, 31 thereafter 6 years $10,105 8% 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 Required1 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 Date General Journal Debit Credit January 01. Right-of-use asset 218,354 Lease payable 218,354 January 01, Lease payable 13,092 2018 Cash 13,092 2 3 March 31, 2018 Interest expense 4,105 Lease payable 8,987 Cash 13,092 10,918 4 March 31, 2018 Amortization expense Right-of-use asset 10,918 Required 1 Required 2>Step by Step Solution
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