Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machinesmanufactured the equipment at a cost of $101,000. Manufacturers Southern's fiscal year ends December 31. (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:2 years (8 quarterly periods)$18,000 at the beginning of each period2 years$132,28910%Lease termQuarterly rental paymentsEconomic life of assetFair value of assetImplicit interest rateRequired:1. Show how International Machines determined the $18,000 quarterly lease payments.2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second leasepayment on April 1, 2021.Complete this question by entering your answers in the tabs below.Required 1Required 2Show how International Machines determined the $18,000 quarterly lease payments. (Round your intermediate and final

Time value of money: The time value is measured with the difference between an option's current…

1. Show how International Machines determined the $18,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.

1. Show how International Machines determined the $18,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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