Eastern Edison Company leased equipment from HiTech Leasing on January
Other information:
Lease term years
Annual payments $ on January each year
Life of asset years
Implicit interest rate
PV annuity due, periods,
PV ordinary annuity, periods,
HiTech's cost of the equipment $
There is no expected residual value.
Required:
Prepare appropriate journal entries for
Record the lease
Record the cash receipt for the annual payments
Record the adjusting entry
Record the cash reciept for the annual payments
Record the adjusting entry
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Round your intermediate and final answers to the nearest whole dollar amounts.
