24-2) Southwestern Edison Company leased equipment from Hi-Tech Inc on January 1, 2021. Hi-Tech manufactured...
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24-2) Southwestern Edison Company leased equipment from Hi-Tech Inc on January 1, 2021. Hi-Tech manufactured the equipment at a cost of $90,000. Other information: Lease term Annual payments Life of asset Fair value of asset Implicit interest rate Incremental rate 3 years $40,000 on January 1 each year 3 years $111,332 8% 8% There is no expected residual value. Required: Prepare appropriate journal entries for Hi-Tech Inc (Lessor) for 2021. Assume a December 31 year-end. Round your answers to the nearest whole dollar amounts. *No cash on December 31, 2021. **Do not prepare the lessee's journal entries. No credit for the lessee's entries. January 1, 2021: December 31, 2021
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