Prepare an amortization schedule

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Reference no: EM13880339

1.Manufacturers Southern leased high tech electronic equipment from Edison Leasing on January 1, 2013. Manufacturers Southern has the option to renew the lease at the end of two years for an additional three years for $8,000 per quarter. Edison purchased the equipment from International Machines at a cost of $198,375.

Required:
1. Prepare appropriate entries for Manufacturers Southern from the commencement of the lease through March 31, 2013. Appropriate adjusting entries are made quarterly.
2. Prepare an amortization schedule for the term of thelease.

Reference no: EM13880339

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