Business, 15.10.2020 09:01 lkipjjjjjjjjjj2272

Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the equipment from Doane Machines at a cost of $255,000, its fair value. Related Information:

Lease term 2 years (8 quarterly periods)
Quarterly lease payments $20,000 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter
Economic life of asset 5 years
Interest rate charged by the lessor 12%

Required:
Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2021.

Answers: 3

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Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtn...