Manufactures Southern leased high tech electronic equipment from Edison Leasing on Jan 1,2006. Edison purchased the equipment from IM at a cost of $112,080.

Lease term 2 years (8 qtrly periods)
Quarterly rental payments $15,000 beg of each period
Economic life of asset 2 years
Fair value of asset $112,080
Implicit interest rate 8%

Prepare a lease amortization schedule and appropriate entries for Manufactures Southern from the inception of the lease through Jan 1, 2007. Deprection is recorded at the end of each fiscal year (Dec 31) on a straight line basis.


I'm not sure how to prepare a lease amortization schedule for quarterly payments. :D