Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at

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Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at a cost of $85,000.

Other information:

Lease term 4 years Annual payments $30,000 on January 1 of each year Life of the asset 4 years Fair value of the asset $105,939 Implicit interest rate 9% Incremental rate 9% There is no expected residual value.

Required:

Prepare appropriate journal entries for Hi-Tech Leasing for 2018. Assume ending December 31

Related Book For answer-question

Intermediate accounting

ISBN: 978-0077647094

7th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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Posted Date: Apr 26, 2023 06:11 AM

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Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at

Question:

Expert Answer:

HiTech Leasing is the lessor in this lease arrangement As per the information provided the lease arr... View the full answer

Intermediate accounting

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