FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at a
cost of $94,500.
Other information:
3 years
$49,000 on January 1 each year
3 years
$136, 382
Lease term
Annual payments
Life of asset
Fair value of asset
Implicit interest rate
8%
Incremental rate
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
2
3
>
Record the lease.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
January 01, 2018
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