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On January 1, 2018, entered into a three-year lease for new office space agreeing to lease...

On January 1, 2018, entered into a three-year lease for new office space agreeing to lease payments of: $5,500 in 2018, $7,000 in 2019 and $8,500 in 2020. Payments are due on December 31 of each year with the first payment being made on December 31, 2018. Harlon is aware that the lessor used a 6% interest rate when calculating lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)


Required:
1-4. Prepare the appropriate entries for Harlon Consulting on January 1, 2018, December 31, 2018, 2019 and 2020 to record the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.)

  • 1. Record for Harlon consulting the beginning of the lease.

  • 2. Record the lease payment and interest expense for Harlon Consulting.

  • 3. Record the amortization expense for Harlon Consulting.

  • 4. Record the lease payment and interest expense for Harlon Consulting.

  • 5. Record the amortization expense for Harlon Consulting.

  • 6. Record the lease payment and interest expense for Harlon Consulting.

  • 7. Record the amortization expense for Harlon Consulting.

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Hope this helps, if not please let know in comments. Please mark the answer as helpful for the efforts put, it will mean alot. Thanks

ekkarill92 answered 1 year ago
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