On Jan 1, 202X, XYZ signs a 3-year lease of a storefront. The lease does not...

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On Jan 1, 202X, XYZ signs a 3-year lease of a storefront. The lease does not qualify as a finance lease and, therefore, the lessee will account for it as an operating lease. The lease requires upfront payment of $20,000 and additional payments at the beginning of each of the next 2 years with each payment increasing by 10%. Prepare all the journal entries the lessee would make through the life of the lease. View transaction list Journal entry worksheet < 1 2 3 5 6 7 Prepare the journal entry to capitalize the lease on Jan 1, 2024 Note: Enter debits before credits. S.No/Date January 01, 2024 Account Title Debit Credit 1 2 3 4 5 6 7 Prepare the journal entry for the first lease payment on Jan 1, 2024 Note: Enter debits before credits. S.No/Date January 01, 2024 Account Title 2 4 5 6 7 Debit Credit Prepare the journal entry to record the lease expense at the end of 2024. Note: Enter debits before credits. S.No/Date December 31, 2024 2 3 Account Title 5 6 7 Debit Credit Prepare the Journal entry to record to Lease payment on Jan 1, 2025 Note: Enter debits before credits. S.No/Date January 01, 2025 Account Title Debit Credit 2 3 4 5m 6 7 Prepare the journal entry to record the lease expense at the end of 2025. Note: Enter debits before credits. S.No/Date December 31, 2025 Account Title Debit Credit 2 3 4 5 7 Prepare the journal entry to record the lease payment on Jan 1, 2026. Note: Enter debits before credits. S.No/Date January 01, 2026 1 Account Title Debit Credit 3 4 5 6 Prepare the journal entry to record the lease expense at the end of 2026. Note: Enter debits before credits. S.No/Date December 31, 2026 Account Title Debit Credit > On Jan 1, 202X, XYZ signs a 3-year lease of a storefront. The lease does not qualify as a finance lease and, therefore, the lessee will account for it as an operating lease. The lease requires upfront payment of $20,000 and additional payments at the beginning of each of the next 2 years with each payment increasing by 10%. Prepare all the journal entries the lessee would make through the life of the lease. View transaction list Journal entry worksheet < 1 2 3 5 6 7 Prepare the journal entry to capitalize the lease on Jan 1, 2024 Note: Enter debits before credits. S.No/Date January 01, 2024 Account Title Debit Credit 1 2 3 4 5 6 7 Prepare the journal entry for the first lease payment on Jan 1, 2024 Note: Enter debits before credits. S.No/Date January 01, 2024 Account Title 2 4 5 6 7 Debit Credit Prepare the journal entry to record the lease expense at the end of 2024. Note: Enter debits before credits. S.No/Date December 31, 2024 2 3 Account Title 5 6 7 Debit Credit Prepare the Journal entry to record to Lease payment on Jan 1, 2025 Note: Enter debits before credits. S.No/Date January 01, 2025 Account Title Debit Credit 2 3 4 5m 6 7 Prepare the journal entry to record the lease expense at the end of 2025. Note: Enter debits before credits. S.No/Date December 31, 2025 Account Title Debit Credit 2 3 4 5 7 Prepare the journal entry to record the lease payment on Jan 1, 2026. Note: Enter debits before credits. S.No/Date January 01, 2026 1 Account Title Debit Credit 3 4 5 6 Prepare the journal entry to record the lease expense at the end of 2026. Note: Enter debits before credits. S.No/Date December 31, 2026 Account Title Debit Credit >

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Lets prepare the journal entries for each transaction 1 To capi... View the full answer