Edison Leasing leased high-tech electronic equipment toManufacturers Southern on January 1, 2018. Edison purchased theequipment from International Machines at a cost of $131,379. (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 tablesprovided.)
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| Related Information: |
| Lease term | 2 years (8 quarterly periods) |
| Quarterly rental payments | $17,000 at the beginning of each period |
| Economic life of asset | 2 years |
| Fair value of asset | $131,379 |
| Implicit interest rate | 4% |
| (Also lessee’s incremental borrowing rate) |
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Required:
Prepare a lease amortization schedule and appropriate entries forEdison Leasing from the beginning of the lease through January 1,2019. Edison’s fiscal year ends December 31.
"Amort Schedule and General Journal"
