Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $127,024. (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 rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate). Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis. 2 years (8 quarterly periods) $17,000 at the beginning of each period 2 years $127,024 8% Amort Schedule Complete this question by entering your answers in the tabs below. General Journal Answer is not complete. Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. (Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $127,024. (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 rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate). Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis. 2 years (8 quarterly periods) $17,000 at the beginning of each period 2 years $127,024 8% Amort Schedule Complete this question by entering your answers in the tabs below. General Journal Answer is not complete. Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. (Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ?
Transcribed Image Text:Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the
equipment from International Machines at a cost of $127,024. (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 rental payments
Economic life of asset
Fair value of asset
Implicit interest rate
(Also lessee's incremental borrowing rate)
Required:
Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through
January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis.
2 years (8 quarterly periods)
$17,000 at the beginning of each period
2 years
$127,024
8%
Amort
Schedule
Complete this question by entering your answers in the tabs below.
General
Journal
X Answer is not complete.
Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1,
2022. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. (Enter your answers in
whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. If no entry is
required for a transaction/event, select "No journal entry required" in the first account field.)
Show less
Transcribed Image Text:Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1,
2022. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. (Enter your answ
whole dollars and not in millions. Round your intermediate and final answers to the nearest whole dollar. If no entry is
required for a transaction/event, select "No journal entry required" in the first account field.)
No
1
2
3
4
6
7
8
Date
January 01, 2021 Right-of-use asset
Lease payable
January 01, 2021 Lease payable
Cash
April 01, 2021
July 01, 2021
Interest expense
Lease payable
Interest expense
Lease payable
Cash
October 01, 2021 Interest expense
Lease payable
Cash
December 31, 202 Amortization expense
Right-of-use asset
December 31, 202 Interest expense
Interest payable
January 01, 2022 Interest payable
Lease payable
Cash
General Journal
X
Debit
127,024
17,000
2,200
14,800
1,904
15,096
1,603
15,397
63,512
1,295 X
1,295
15,705
Credit
127,024
17,000
17,000
17,000
63,512
1,295
17,000
Show
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