12 Grichuk Power leased high-tech electronic equipment from Kolten Leasing on Ja

Question

12 Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1. 2018. Kolten purchased the equipment from Wong Machines at a cost of $254,000, its fair value. (FV of $1, PV of S1. EVA of S1. PVA.of S1. EVAD ofSi and PVAD of s) (Use appropriate factor(s) from the tables provided.) 10 points Related Information: Lease term Quarterly lease payments Economic life of asset Interest rate charged by the lessor 2 years (8 quarterly periods) $19,000 et Jan. 1, 2018, and at Har, 31, June 30, Sept. 3e, and Dec. 31 thereafter. 5 years 8% eBook Hint Required: Prepare a lease amortization schedule and appropriate entries for Grichuk Power from the commencement of the lease through Print References December 31. 2018. December 31 is the fiscal year end for each company, Appropriate adjusting entries are recorded at the end of each quarter Complete this question by entering your answers in the tabs below. General Amort Schedule Journal Prepare a lease amortization schedule for the term of the lease for Grichuk Power from the commencement of the lease

Explanation / Answer

Part 2

Part 1

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Entries in the books of Grichuk Power Date Account Title Debit Credit Jan.1,2018 Asset $1,41,967.00 Lease Payable $1,41,967.00 (Start of the lease) Jan.1,2018 Lease Payable $19,000.00 Cash $19,000.00 (Payment of first lease rental) Apr.1,2018 Lease Payable $16,540.66 Interest Expense $2,459.34 Cash $19,000.00 (Payment of second lease rental) July.1, 2018 Lease Payable $16,871.47 Interest Expense $2,128.53 Cash $19,000.00 (Payment of third lease rental) Oct.1, 2018 Lease Payable $17,208.90 Interest Income $1,791.10 Cash $19,000.00 (Payment of fourth lease rental) Dec.31,2018 Interes Expense $1,446.92 Interest Payable $1,446.92 (Interest expense on lease rental recorded) Jan.1, 2019 Lease Payable $17,553.08 InterestPayable $1,446.92 Cash $19,000.00 (Payment of fifth lease rental) Apr.1,2019 Lease Payable $17,904.14 Interest Expense $1,095.86 Cash $19,000.00 (Payment of sixth lease rental) July.1, 2019 Lease Payable $18,262.23 Interest Expense $737.77 Cash $19,000.00 (Payment of seventh lease rental) Oct.1, 2019 Lease Payable $18,627.45 Interest Expense $372.55 Cash $19,000.00 (Payment of eighth lease rental)

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