Eastern Edison Company leased equipment from Hi-Tech Leasing onJanuary 1, 2018. Other information: Lease...

80.2K

Verified Solution

Question

Accounting

Eastern Edison Company leased equipment from Hi-Tech Leasing onJanuary 1, 2018. Other information: Lease term 4 years Annualpayments $89,000 on January 1 each year Life of asset 4 yearsImplicit interest rate 8% PV, annuity due, 4 periods, 8% 3.5771 PV,ordinary annuity, 4 periods, 8% 3.3121 Hi-Tech's cost of theequipment $318,362 There is no expected residual value. Required:Prepare appropriate journal entries for Hi-Tech Leasing for 2018and 2019. Assume a December 31 year-end. (If no entry is requiredfor a transaction/event, select "No journal entry required" in thefirst account field. Round your answers to the nearest whole dollaramounts.)

Answer & Explanation Solved by verified expert

3.7 Ratings (383 Votes)

Lease amortization table lessor Period Beginning balance of lease receivable Lease receipt Interest revenue Beginning balance of lease receivable 8 Reduction in lease receivable Lease receipt Interest See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingEastern Edison Company leased equipment from Hi-Tech Leasing onJanuary 1, 2018. Other information: Lease term...Eastern Edison Company leased equipment from Hi-Tech Leasing onJanuary 1, 2018. Other information: Lease term 4 years Annualpayments $89,000 on January 1 each year Life of asset 4 yearsImplicit interest rate 8% PV, annuity due, 4 periods, 8% 3.5771 PV,ordinary annuity, 4 periods, 8% 3.3121 Hi-Tech's cost of theequipment $318,362 There is no expected residual value. Required:Prepare appropriate journal entries for Hi-Tech Leasing for 2018and 2019. Assume a December 31 year-end. (If no entry is requiredfor a transaction/event, select "No journal entry required" in thefirst account field. Round your answers to the nearest whole dollaramounts.)