on for an additional pents ted by the lessor 2 years (8 quarterly periods) 3 years at $9,900 per quarter $ 16,000 at January 1, 2024, and at December 31 thereafter. 5 years 8%
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![[The following information applies to the questions displayed below.]
High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option
to renew the lease at the end of two years for an additional three years for $9,900 per quarter. Adventures purchased the
equipment at a cost of $226,342.
Note: Use Excel, or a financial calculator.
Related Information:
Lease tere
Lease renewal option for an additional
Quarterly lease payments
Economic life of asset
Interest rate charged by the lessor
2 years (8 quarterly periods)
3 years at $9,900 per quarter
$ 16,000 at January 1, 2024, and at March 31, June 30, September 30, and
December 31 thereafter.
5 years
8%
Required:
1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2024. Appropriate adjusting
entries are made quarterly.
Note: If no entor is requ](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42b718ca-32e2-433b-b895-51b7b6877863%2F175aee1c-66c7-4144-8395-85dac4c13f08%2Fx0cq928_processed.png&w=3840&q=75)
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- Required information [The following information applies to the questions displayed below.] High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option to renew the lease at the end of two years for an additional three years for $9,000 per quarter. Adventures purchased the equipment at a cost of $212,218. Note: Use Excel, or a financial calculator. Related Information: Lease term 2 years (8 quarterly periods) Lease renewal option for an additional 3 years at $9,000 per quarter Quarterly lease payments Economic life of asset $ 16,000 at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter. 5 years Interest rate charged by the lessor 10% Required: 1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2024. Appropriate adjusting entries are made quarterly.! Required information [The following information applies to the questions displayed below.] High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end of two years for an additional three years for $8,100 per quarter. Adventures purchased the equipment at a cost of $196,141. (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 Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lessor 2 years (8 quarterly periods) 3 years at $8,100 per quarter $15,100 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. 5 years 10% Required: 1. Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2021. Appropriate adjusting entries are made quarterly. (If no entry is required for a…Required information [The following information applies to the questions displayed below.] High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end of two years for an additional three years for $8,100 per quarter. Adventures purchased the equipment at a cost of $196,141. (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 Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lessor 2 years (8 quarterly periods) 3 years at $8,100 per quarter $15,100 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter. 5 years 10%
- High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option to renew the lease at the end of two years for an additional three years for $8,000 per quarter. Adventures purchased the equipment at a cost of $198,375. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Related Information: Lease term Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lesson 2. Prepare an amortization schedule for the term of the lease. Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values. Date January 1, 2024 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31 2025 Lease Payments 2 years (8 quarterly periods) 3 years at $8,000 per quarter $ 15,000 at January 1, 2024, and at March 31, June…Blossom Manufacturing Ltd. has signed a lease agreement with Crane Leasing Inc. to lease some specialized manufacturing equipment. The terms of the lease are as follows: ⚫ The lease is for 5 years commencing January 1,2023. • ⚫ Blossom must pay Crane $54,114 on January 1 of each year, beginning in 2023. • • Equipment of this type normally has an economic life of 6 years. • Crane has concluded, based on its review of Blossom's financial statements, that there is no unusual credit risk in this • situation. Crane will not incur any further costs with regard to this lease. ⚫ Crane purchases this equipment directly from the manufacturer at a cost of $214,026, and normally sells the equipment for $251,626. • ⚫ Blossom's borrowing rate is 7%. Crane's implied interest rate is 6%, which is known to Blossom at the time of negotiating the lease. • • Blossom uses the straight-line method to depreciate similar equipment. ⚫ Both Blossom and Crane have calendar fiscal years (year end December 31),…Please provide the correct answer, and I will make sure to like your response. For calculation purposes, use 5 decimal places Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Shamrock Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. 2. The fair value of the asset at January 1, 2020, is $74,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $3,000, none of which is guaranteed. 4. The agreement requires equal annual rental payments of $24,716 to the lessor, beginning on January 1, 2020. 5. The lessee’s incremental borrowing rate is 5%. The lessor’s implicit rate is 4% and is unknown to the lessee. 6. Shamrock uses the straight-line depreciation method for all equipment.
- On June 1, 2024, First National leased a building. The lease agreement calls for First National to make lease payments of $3,627.06 each month for the next two years, with the first lease payment beginning June 30. The company's normal borrowing rate is 79%. Required: 1. Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.) 2. Record the lease on June 1, 2024. Complete this question by entering your answers in the tabs below.High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end of two years for an additional three years for $9,300 per quarter. Adventures purchased the equipment at a cost of $219,824. (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)Lease renewal option for an additional 3 years at $9,300 per quarterQuarterly lease payments $ 16,300 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.Economic life of asset 5 yearsInterest rate charged by the lessor 8% Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2021. Appropriate adjusting entries are made quarterly. (If no entry is required for a transaction/event, select "No journal entry required" in the…High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2021. High Time has the option to renew the lease at the end of two years for an additional three years for $9,300 per quarter. Adventures purchased the equipment at a cost of $219,824. (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)Lease renewal option for an additional 3 years at $9,300 per quarterQuarterly lease payments $ 16,300 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.Economic life of asset 5 yearsInterest rate charged by the lessor 8%Prepare an amortization schedule for the term of the lease.
- (Lessor Entries; Direct-Financing Lease with Option to Purchase) Castle Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to Jan Way Company. The term of the noncancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement:1. Jan Way Company has the option to purchase the equipment for $16,000 upon termination of the lease.2. The equipment has a cost and fair value of $160,000 to Castle Leasing Company. The useful economic life is 2 years, with a salvage value of $16,000.3. Jan Way Company is required to pay $5,000 each year to the lessor for executory costs.4. Castle Leasing Company desires to earn a return of 10% on its investment.5. Collectibility of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor.Instructions(a) Prepare the journal entries on the books of Castle Leasing to reflect the…Delray Leasing Company signs an agreement on January 1, 2025, to lease equipment to Sheridan Company. The following information relates to this agreement. Assume that the expected residual value at the end of the lease is $27,400, such that the payments are $22,227.36. 1. 2. 3. 4. 5. 6. The term of the non-cancelable lease is 4 years with no renewal option. The equipment has an estimated economic life of 6 years. The fair value of the asset at January 1, 2025, is $105,300. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $27,400, none of which is guaranteed. The agreement requires equal annual rental payments of $22,227.36 to the lessor, beginning on January 1, 2025. The lessee's incremental borrowing rate is 6%. The lessor's implicit rate is 5% and is unknown to the lessee. Sheridan uses the straight-line depreciation method for all equipment. Date Account Titles and Explanation (To record the lease) (To…11. What amount of gross income should be recognized by the entity for 2020? a. P555,000 b. P827,000 c. P955,000 d. P700,000 12. What amount should be recognized as interest income for 2020? a. P194,160 b. P154,160 c. P172,400 d. P128,000
