Question: Accounting for Leases (FSET) 2. Using the financial statement effects template, report the entries that Hanna Corporation would make on January 3 and Detember 31

Accounting for Leases (FSET) 2. Using the financial statement effects template,

Accounting for Leases (FSET) 2. Using the financial statement effects template, report the entries that Hanna Corporation would make on January 3 and Detember 31 to record this lease assuming 1. the lease is reported as an operating lease. il. the lease is reported as a finance lease. - Note: Use negative signs with your answers, when appropriate. - Note: Select 'N/R' as your answer if a part of the accounting equation is not affected. - Note: Round answers to the nearest whole dollar. 1. Operating Lease: ii. Finance Lease: b. Explain how the financial statement effects differ between the two treatments. The amount of expense recognized on the income statement in the early years of a finance lease is greater than experse recognized in the early years of an aperating lease

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