Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $112,080.
Related Information:
Lease term ....................................... 2 years (8 quarterly periods)
Quarterly rental payments....... $15,000 at the beginning of each period
Economic life of asset .................................................. 2 years
Fair value of asset .................................................... $112,080
Implicit interest rate ......................................................... 8%
(Also lessee's incremental borrowing rate)
Required:
Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2019. Edison's fiscal year ends December 31?