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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 $85,500. Other information: Lease term

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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 $85,500. Other information: Lease term Annual payments Life of asset Fair value of asset Implicit interest rate Incremental rate 4 years $31,000 on January 1 each year 4 years $110,890 8% 8% 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.) View transaction list Journal entry worksheet 1 2 3 Record the lease. Note: Enter debits before credits 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.) View transaction list Journal entry worksheet 2 3 Record the leas No journal entry required Accumulated depreciation Amortization expense Building Note: Enter debits b Date Debit Credit January 01, 2018 Record entry Clear entry View general journal 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.) View transaction list Journal entry worksheet 3 Record the cash received. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2018 Record entry Clear entry View general Journal 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.) View transaction list Journal entry worksheet 2 3 Record the interest revenue. Note: Enter debits before credits General Journal Debit Credit Date December 31 2018 Record entry Clear entry View general Journal

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