Solution-Create and show an amortization schedule for term

Create and show an amortization schedule for term of lease

Reference no: EM132475896

High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2018. High Time has the option to renew the lease at the end of two years for an additional three years for $9,400 per quarter. Adventures purchased the equipment at a cost of $219,364.

Related Information:

Lease term = 2 years (8 quarterly periods)

Quarterly lease payments $16,400 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.

Lease renewal option for an additional 3 years at $9,400 per quarter

Economic life of asset= 5 years

Interest rate charged by the lessor = 10%

Required:

Question 1. Show appropriate journal entries for High Time Tours from the beginning of the lease through March 31, 2018. Appropriate adjusting entries are made quarterly.

Question 2. Show an amortization schedule for the term of the lease.

Reference no: EM132475896

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Create and show an amortization schedule for term of lease

Reference no: EM132475896

Reference no: EM132475896

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