Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1, 2018. Kolten purchased the equipment from Wong Machines at a cost of $250,000, its fair value. (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 Quarterly lease payments Economic life of asset Interest rate charged by the lessor Required: Prepare a lease amortization schedule and appropriate entries for Grichuk Power from the commencement of the lease through December 31, 2018. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter. Complete this question by entering your answers in the tabs below. Amort Schedule Payment Date General Journal Prepare a lease amortization schedule for the term of the lease for Grichuk Power from the commencement of the lease through December 31, 2018. December 31 is the fiscal year end for each company. (Round your intermediate calculations to the nearest whole dollar amount. Enter all amounts as positive values.) 01/01/2018 04/01/2018 07/01/2018 10/01/2018 01/01/2019 04/01/2019 2 years (8 quarterly periods) $15,000 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. 5 years 8% Lease Payments Effective Interest Decrease in Balance Lease Balance
Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1, 2018. Kolten purchased the equipment from Wong Machines at a cost of $250,000, its fair value. (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 Quarterly lease payments Economic life of asset Interest rate charged by the lessor Required: Prepare a lease amortization schedule and appropriate entries for Grichuk Power from the commencement of the lease through December 31, 2018. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter. Complete this question by entering your answers in the tabs below. Amort Schedule Payment Date General Journal Prepare a lease amortization schedule for the term of the lease for Grichuk Power from the commencement of the lease through December 31, 2018. December 31 is the fiscal year end for each company. (Round your intermediate calculations to the nearest whole dollar amount. Enter all amounts as positive values.) 01/01/2018 04/01/2018 07/01/2018 10/01/2018 01/01/2019 04/01/2019 2 years (8 quarterly periods) $15,000 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. 5 years 8% Lease Payments Effective Interest Decrease in Balance Lease Balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1, 2018. Kolten purchased the equipment from
Wong Machines at a cost of $250,000, its fair value. (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
Quarterly lease payments
Economic life of asset
Interest rate charged by the lessor
Required:
Prepare a lease amortization schedule and appropriate entries for Grichuk Power from the commencement of the lease through
December 31, 2018. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of
each quarter.
Complete this question by entering your answers in the tabs below.
Amort
Schedule
Payment Date
General
Journal
Prepare a lease amortization schedule for the term of the lease for Grichuk Power from the commencement of the lease
through December 31, 2018. December 31 is the fiscal year end for each company. (Round your intermediate calculations to
the nearest whole dollar amount. Enter all amounts as positive values.)
01/01/2018
04/01/2018
07/01/2018
10/01/2018
01/01/2019
04/01/2019
2 years (8 quarterly periods)
$15,000 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.
5 years
8%
Lease
Payments
Effective
Interest
Decrease in
Balance
Lease Balance
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