Core Co. leased a piece of manufacturing equipment from E-So Co. with the following terms: Annual...

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Core Co. leased a piece of manufacturing equipment from E-So Co. with the following terms: Annual lease payment: $770,000 Term of lease: 5 years Interest rate: 4% Lease commences on January 1, 2023 Payments are made on December 31 of each year in the lease term For parts a and b: a. Prepare journal entries to show the effects for Core Co. for January 1, 2023-December 31, 2024, if the lease is classified as a finance lease. b. Prepare journal entries to show the effects for Core Co. for January 1, 2023-December 31, 2024, if the lease is classified as an operating lease. Operating Lease Finance Lease b. Operating lease: Date Jan. 1, 2023 Dec. 31, 2023 Account To record the start of the operating lease. To record the lease payment. Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2024 To record the lease expense. To record the lease payment. To record the lease expense. Debit Credit Core Co. leased a piece of manufacturing equipment from E-So Co. with the following terms: Annual lease payment: $770,000 Term of lease: 5 years Interest rate: 4% Lease commences on January 1, 2023 Payments are made on December 31 of each year in the lease term For parts a and b: a. Prepare journal entries to show the effects for Core Co. for January 1, 2023-December 31, 2024, if the lease is classified as a finance lease. b. Prepare journal entries to show the effects for Core Co. for January 1, 2023-December 31, 2024, if the lease is classified as an operating lease. Operating Lease Finance Lease b. Operating lease: Date Jan. 1, 2023 Dec. 31, 2023 Account To record the start of the operating lease. To record the lease payment. Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2024 To record the lease expense. To record the lease payment. To record the lease expense. Debit Credit