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Deal Leasing leased equipment to Hand Company on January 1, 2018. The lease payments were calculated...

Deal Leasing leased equipment to Hand Company on January 1, 2018. The lease payments were calculated to provide the lessor a 8% return. Eight annual lease payments of $57,000 are due at the beginning of each year beginning January 1, 2018. The present value of an annuity due of $1 at 8 for Eight periods is 6.20637.

Required: Consider this to be a finance lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) 1. Prepare the journal entries to record the lease by Hand (lessee) at January 1, 2018.

-Record the lease January 01, 2018

-Record the cash payment January 01,2018 2.

2. Prepare the journal entries to record the lease by Hand (lessee) at December 31, 2018, the end of the first reporting period

-Record accrued interest December 31, 2018

-Record the amortization expense December 31, 2018

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ekkarill92 answered 2 years ago
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