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High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1,2024. Adventures purchased the...

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Accounting

High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1,2024. Adventures purchased the equipment at a cost of $206,858.
Related Information:
Lease term 5 years (20 quarterly periods)
Quarterly lease payments $ 15,500 at January 1,2024, and at March 31, June 30, September 30, and December 31 thereafter.
Economic life of asset 5 years
Interest rate charged by the lessor 8%
Required:
1. Prepare an amortization schedule for the term of the lease. (worth 5 points)
2. Prepare appropriate entries for High Time Tours from the beginning of the lease through December, 31,2024(Janaury 1, March 31, September 31, and December 31 entries).(worth 15 points)
3. Explain the total affects the lease will have on the financial statements. (worth 3 points)
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