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Exercise 15-8 (Algo) Sales-type lease with selling profit; lessor; calculate lease payments [LO15-3] Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $94,000. Manufacturers Southern's fiscal year ends December 31. (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 tables provided.) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments Economic life of asset Fair value of asset $18,200 at the beginning of each period 2 years $138,287 6% Implicit interest rate Required: 1. Show how International Machines determined the $18,200 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021. Complete this question by entering your answers in the tabs below.
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how International Machines determined the $18,200 quarterly lease payments. (Round your intermediate and final answers to the nearest whole dollar. Round your percentage answer to 1 decimal place.) PV factors based on Table or Calculator function: PV of Lease Lease Payment Required 1 Required 2 > n =
Required 1 Required 2 Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet > 1 2 3 Record the lease. Note: Enter debits before credits. Debit Date January 01, 2021 General Journal Credit
View transaction list Journal entry worksheet < 1 2 3 Record cash received. Note: Enter debits before credits. Date January 01, 2021 Record entry General Journal Clear entry Debit Credit View general journal
View transaction list Journal entry worksheet < 1 2 3 Record cash received. Note: Enter debits before credits. Date April 01, 2021 Record entry General Journal Clear entry Debit Credit View general journal