ACC 201 Chapter 15 Open-Ended Assignment B C D E F Note: Please put your answers only in the section below the Bold Red sentence at the end of the Required section below. On December 31, Year One, the Dispersion Company decides to lease a piece of equipment rather than buy it. The lease is for 8 years. Payments are $49,000 every December 31 beginning on December 31, Year One. The implicit rate is 11 percent and is known by Dispersion. Required: A. Assume this lease is classified as a finance lease. What journal entries are made in Year One and Year two? B. Assume this lease is classified as an operating lease. What journal entries are made in Year One and Year two?

Note: Please put your answers only in the section below the Bold Red sentence at the end of the Required section below. s. On December 31, Year One, the Dispersion Company decides to lease a piece of equipment rather than buy it. The lease is for 8 years. Payments are $49,000 every December 31 beginning on December 31, Year One. The implicit rate is 11 percent and is known by Dispersion. Required: A. Assume this lease is classified as a finance lease. What journal entries are made in Year One and Year two? B. Assume this lease is classified as an operating lease. What journal entries are made in Year One and Year two? B Assuming the lease is an operating lease: \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow{2}{*}{1516} & \multirow[t]{2}{*}{ A } & \multicolumn{4}{|c|}{ Assuming the lease is a finance lease: } \\ \hline & & Date & Account Name & Debit & Credit \\ \hline 17 & & Dec. 31, Year One & & & \\ \hline \multicolumn{6}{|l|}{18} \\ \hline \multicolumn{6}{|l|}{19} \\ \hline 20 & & & & & \\ \hline 21 & & Dec. 31, Yeat One & & & \\ \hline 22 & & & t & & \\ \hline \multicolumn{6}{|l|}{23} \\ \hline \multicolumn{6}{|l|}{24} \\ \hline \multicolumn{6}{|l|}{25} \\ \hline 26 & & Dec. 31, Year Two & & & \\ \hline \multicolumn{6}{|l|}{27} \\ \hline \multicolumn{6}{|l|}{28} \\ \hline \multicolumn{6}{|l|}{29} \\ \hline 30 & & Dec. 31, Year Two & & & \\ \hline 31 & & & & 1 & \\ \hline \multicolumn{6}{|l|}{32} \\ \hline \multicolumn{6}{|l|}{33} \\ \hline 34 & & Dec. 31, Year Two & & & \\ \hline 35 & & & & & - \\ \hline 36 & & & & * & \\ \hline \end{tabular}