COMPLETE PART F Ivanhoe Manufacturing Ltd$.$ has signed a lease agreement with Oriole Leasing Inc. to lease some specialized manufacturing equipment.

The terms of the lease are as follows:

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The lease is for $5$ years commencing January $1,2023.$

Ivanhoe must pay Oriole $$54,114$ on January $1$ of each year, beginning in $2023.$

Equipment of this type normally has an economic life of $6$ years.

Oriole has concluded, based on its review of Ivanhoe's financial statements, that there is no unusual credit risk in this situation. Oriole will not incur any further costs with regard to this lease.

Oriole purchases this equipment directly from the manufacturer at a cost of $$202,026,$ and normally sells the equipment for

$$251,626.$

Ivanhoe's borrowing rate is $7\%.$ Oriole's implied interest rate is $6\%,$ which is known to Ivanhoe at the time of negotiating the lease.

Ivanhoe uses the straight$-$line method to depreciate similar equipment.

Both Ivanhoe and Oriole have calendar fiscal years $($year end December $31),$ and follow ASPE.Correct Answer $($Used$)$

Your answer is partially correct

Prepare the journal entries on lvanhoe Manufacturing's books on January $1,2023($List all debit entries before credit entries. Credit

account titles are autamatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for

the account titles and enter $0$ for the amounts.$)$

$($To record inception of lease$)$

Lease Uabllity

Cash

$($To record lease paryment.

eTextbook and Media

List of Accounts

$($e$)$

Prepare the journal entries an Oriale Leasing's books an January $1,2023.($List all debit entries before credit entries. Oredit occount

tities are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the

account titles and enter $0$ for the amounts.

$[$Collection of lease payment$\}$

Your answer is partially correct. COMPLETE PART F

Prepare the journal entries for Ivanhoe Manufacturing on December $31,2023($List all debit entries before credit entries. Credit

Prepare the journal entries for Ivanhoe Manufacturing on December $31,2023.($List all debit entries before credit entries, Credit

the account titles and enter $0$ for the amounts. Round answers to $0$ decimal places, eg$.5,125.$

Date Account Titles and Explanation

Credit

DeC. $31,$