Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2016. Edison purchased the equipm

Question

3 years ago

12

Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2016. Edison purchased the equipm

ent from International Machines at a cost of $112,080. (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 $15,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $112,080 Implicit interest rate 8% (Also lessee’s incremental borrowing rate)
1. Required: Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern from the inception of the lease through January 1, 2017. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis.

Payment Date Lease Payments Interest expense Decrease in Balance lease balance

2.

Record the appropriate entries for Manufacturers Southern from the inception of the lease through January 1, 2017. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a. record the lease (Jan. 01,2016)

b. record lease payment (Jan. 01, 2016)

c. record lease payment (Apr. 01, 2016)

d. record lease payment (July 01, 2016)

e. record lease payment (Oct. 01, 2016)

f. record accrued interest (Dec. 31, 2016)

g. record depreciation expense. (Dec. 31, 2016)

h. record lease payment (Jan. 01, 2017)

I would like to get right answer and please provide calculate and explain.

Business