View the step-by-step solution to:


Manufacturers Southern leased high-tech electronic equipment from Edison

Leasing on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $127,650. (FV of $1PV of $1FVA of $1PVA of $1FVAD of $1 and PVAD of $1(Use appropriate factor(s) from the tables provided.)

Related Information:Lease term2 years (8 quarterly periods)

Quarterly rental payments$16,800 at the beginning of each period

Economic life of asset2 years

Fair value of asset$127,650

Implicit interest rate6%(Also lessee's incremental borrowing rate)

Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2019. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis.

Top Answer

Amortization schedule and journal... View the full answer

southern formulae.PNG

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question