Eastern Edison Company leased equipment from HiTech Leasing on January
Lease term years
Annual payments $ on January each year
Life of asset years
Implicit interest rate
PV annuity due, periods,
PV ordinary annuity, periods,
HiTech's cost of the equipment $
There is no expected residual value.
Assume a December yearend. Round your answers to the nearest whole dollar amounts.
a Show the appropriate journal entries for for Hi Tech Leasing
b Show the appropriate journal entry for for Hi Tech Leasing
c For Hi Tech Leasing's Statement of Cash Flow, what would be any cash flows shown on the face of the statement associated with the lease and their classification as operating, investing, or financing?
d What if Hi Tech manufactured the equipment at a cost of $ then was leasing to Eastern Edison using all the terms above. Show the appropriate journal entries for in this what if scenario.
