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.

BeginningInstallmentInterestEnding

1144,605.0020,000            0         124,605

2124,605.0020,000     3,738.15108,343

3  108,343.1520,000     3,250.29   91,593

4   91,593.4420,000      2,747.80   74,341

5    74,341.2520,000      2,230.24  56,571

6    56,571.4820,000       1,697.1438,269

7   38,268.6320,000       1,148.06   19,417

8     19,416.6920,000        582.50          0

Journal entries:

Cash 20,000 debit

lease receivables 124,605 debit

          Lease Equipment      144,605 credit

--Jan 1st

cash 20,000 debit

   interest revenue 3,738.15 credit

--March 31st

cash 20,000 debit

   interest revenue  3,250.29 credit

  lease receivables 16749.71  credit

--June 30th

cash 20,000 debit

   interest revenue 2,747.80 credit

  lease receivables 17252.20 credit

--Sep 30th

cash 20,000 debit

   interest revenue    2,230.24 credit

   lease receivables 17,769.76 credit

--Dec 31st

Explanation:

Present value of the lease payment:

C20,000

time8 (eight quarters)

rate0.03 (12% annual --> divided among four quarters = 3%)

PV$144,605.6591

We build the table starting from the present value. Then, we subtract hte installment and in the second period we start doing interest calculations

(not in the firt one as it is being paid in the present thus, no interest accrued)

hopefull this will you!

the business rule that governs the relationship is one-to-many as there are multiple customers for each agent.

answer; /// place the thermal compound between the heat sink and the microprocessor;