Instructions

a$.$Finance Prove the $8\%$ implicit rate used in the lease by using the Excel function PV$.$ Round to the nearest dollar.

b$.$Prepare the journal entries and any year$-$end $($December $31)$ adjusting entries made by Wagner Inc. in $2019$ and $2020$ assuming no reversing entries are used. Wagner uses the straight$-$line method of depreciation. Round to the nearest dollar.

c$.$Prepare a partial comparative statement of cash flows using the direct method for the $2019$ and $2020$ fiscal years along with any additional disclosure notes. Wagner Inc. has adopted the policy of classifying any interest paid as operating activities on the statement of cash flows.

d$.$What additional disclosure is required effective January $1,2020,$ concerning the changes in liabilities arising from financing activities?