Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2011. Edison purchased the equipment from International Machines at a cost of $119,552. (Use Table 6) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $16,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $119,552 Implicit interest rate 8% (Also lessee?s incremental borrowing rate) Required: Prepare a lease amortization schedule for the term of the lease. Also record the appropriate entries for Manufacturers Southern from the inception of the lease through January 1, 2012. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis. (Round "PV factor" to 5 decimal places. Round your answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.) Lease Amortization Schedule Lease Payments Effective Interest Decrease in Balance Outstanding Balance 1 2 3 4 5 6 7 8 Date General Journal Debit Credit Jan.1, 2011 April 1, 2011 July 1, 2011 Oct.1, 2011 Dec.31, 2011 Jan.1, 2012 rev: 01_27_2012 ask your instructor a questioncheck my workeBook Links (2)references ?2011 The McGraw-Hill Companies. All rights reserved.
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