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Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at a cost of $88,500. Other information: 3 years
Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at a cost of $88,500. Other information: 3 years $37,000 on January 1 each year 3 ears $102,087 Lease term Annual payments Life of asset Fair value of asset Implicit interest rate Incremental rate 4.17/16.67 9% points awarded 9% Scored There is no expected residual value. Required: Prepare appropriate journal entries for Hi-Tech Leasing for 2018. Assume a December 31 year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) No Date General Journal Debit Credit January 01, 2018 Lease receivable 1 Interest revenue Equipment January 01, 2018 Cash Lease receivable December 31, 201Interest revenue 3 Interest expense
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