? Following are the terms of a lease entered into on January 1, 2020. [LC] FMV of

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Following are the terms of a lease entered into on January 1, 2020. [LC] FMV of asset at inception oflease Estimated residual value of asset at lease termination Portion of residual value guaranteed by Lessee Lessor's amortized cost of asset at inception of lease Duration of lease Lease payment amount Frequency of payments First payment due at inception of lease? Purchase option that Lessee is reasonably certain to exercise? Title transfers to Lessee at any time during or at end of lease? Lessor's implicit rate Lessee's incremental borrowing rate Does Lessee know Lessor's implicit rate? Remaining economic life of asset Economic life of asset when new Specialized use asset with no alternative use to Lessor at end of lease? Nonlease components included in lease payment? Initial direct costs incurred by Lessor (assume recorded by Lessor in Misc. Expenses when incurred) Initial direct costs incurred by Lessee (assume recorded by Lessor in Misc. Expenses when incurred) Lessor's fiscal year end Lessee's fiscal year end date $500,000.00 $80,000.00 pmt $50,000.00 $500,000.00 2 yrs $230,458.00 annually Yes No No 1/1/2020 1/1/2020 $230,458 12/31/2020 $230,458 yes 5 yrs 5 yrs no no none Required 1. For the following lease, prepare amortization schedule and lease-related entries booked by Lessor and Lessee over the entire lease term. none 12/31 12/31 Complete the amortization schedule by entering the appropriate values in the green boxes Lessee amortization schedule: 12% 12% interest principal balance Lessor amortization schedule date Account Account Enter your entries below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Entries by Lessee at inception of lease on 1/1/2020: Entries by Lessor at inception of lease on 1/1/2020: Entries by Lessee at 12/31/2020: pmt 1/1/2020 1/1/2020 $230,458.00 Account 12/31/2020 $230,458.00 12/31/2021 Debit Debit interest principal balance Debit Credit Credit Credit 1 1 1 1 ~2~N 3 3 ww 3 3 3 Entries by Lessor at 12/31/2020: Account Entries by Lessor at 12/31/2021: Account Entries by Lessee at 12/31/2021: Account Debit Debit Debit Credit Credit Debit Credit 4 4 4 Credit 5 5 5 5 6 2. Redo Lessor's entry to book the lease on January 1, 2020 assuming that the Lessor's amortized cost of the asset is $400,000. 6 Enter your entries below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Entries by Lessor at inception of lease on 1/1/2020: Account 7 7 7 7 Following are the terms of a lease entered into on January 1, 2020. [LC] FMV of asset at inception oflease Estimated residual value of asset at lease termination Portion of residual value guaranteed by Lessee Lessor's amortized cost of asset at inception of lease Duration of lease Lease payment amount Frequency of payments First payment due at inception of lease? Purchase option that Lessee is reasonably certain to exercise? Title transfers to Lessee at any time during or at end of lease? Lessor's implicit rate Lessee's incremental borrowing rate Does Lessee know Lessor's implicit rate? Remaining economic life of asset Economic life of asset when new Specialized use asset with no alternative use to Lessor at end of lease? Nonlease components included in lease payment? Initial direct costs incurred by Lessor (assume recorded by Lessor in Misc. Expenses when incurred) Initial direct costs incurred by Lessee (assume recorded by Lessor in Misc. Expenses when incurred) Lessor's fiscal year end Lessee's fiscal year end date $500,000.00 $80,000.00 pmt $50,000.00 $500,000.00 2 yrs $230,458.00 annually Yes No No 1/1/2020 1/1/2020 $230,458 12/31/2020 $230,458 yes 5 yrs 5 yrs no no none Required 1. For the following lease, prepare amortization schedule and lease-related entries booked by Lessor and Lessee over the entire lease term. none 12/31 12/31 Complete the amortization schedule by entering the appropriate values in the green boxes Lessee amortization schedule: 12% 12% interest principal balance Lessor amortization schedule date Account Account Enter your entries below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Entries by Lessee at inception of lease on 1/1/2020: Entries by Lessor at inception of lease on 1/1/2020: Entries by Lessee at 12/31/2020: pmt 1/1/2020 1/1/2020 $230,458.00 Account 12/31/2020 $230,458.00 12/31/2021 Debit Debit interest principal balance Debit Credit Credit Credit 1 1 1 1 ~2~N 3 3 ww 3 3 3 Entries by Lessor at 12/31/2020: Account Entries by Lessor at 12/31/2021: Account Entries by Lessee at 12/31/2021: Account Debit Debit Debit Credit Credit Debit Credit 4 4 4 Credit 5 5 5 5 6 2. Redo Lessor's entry to book the lease on January 1, 2020 assuming that the Lessor's amortized cost of the asset is $400,000. 6 Enter your entries below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Entries by Lessor at inception of lease on 1/1/2020: Account 7 7 7 7