In: Accounting
The following relate to an operating lease agreement:
a. The lease term is 3 years, beginning January 1, 2018.
b. The leased asset cost the lessor $780,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets.
c. Annual lease payments at the beginning of each year were $130,500.
d. Incremental costs of negotiating costs of negotiating and consummating the completed lease transaction incurred by the lessor were $5,250.
Required:
Prepare the appropriate entries for the lessor from the beginning
of the lease through the end of the lease term. (Round your
intermediate and final answers to the nearest whole dollar amount.
If no entry is required for a transaction/event, select "No journal
entry required" in the first account field.)