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Prepare the journal entries, that Oriole should record on December $31,2027.($Credit account titles are automatically indented when

amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.

Round answers to $0$ decimal places e$.$g$.58,971.$ List all debit entries before credit entries.$)$

List of Accounts TO$/$OL $-$ ACC$-371$ Topic $5$ Assignment

Question $7$ of $8$

$\frac{1\mathrm{.}44}{5}$

$($b$)$

Your answer is partially correct.

Prepare the journal entries, that Oriole should record on December $31,2026.($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.$)$ Prepare the journal entries, that Oriole should record on December $31,2027.($Credit account titles are automatically indented when

amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.

Round answers to $0$ decimal places e$.$g$.58,971.$ List all debit entries before credit entries.$)$

List of Accounts TO$/$OL $-$ ACC$-371$ Topic $5$ Assignment

Question $7$ of $8$

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ORIOLE STEEL COMPANY Balance Sheet $($Partial$)$

December $31,2027$

Assets

Non$-$Current Assets

Right$-$of$-$Use Asset

$

Liabilities

Current Liabilities

Lease Liability

$

Long$-$term Liabilities

Lease Liability

$

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Attempts: $1$ of $5$ used

Current Attempt in Progress

Oriole Steel Company, as lessee, signed a lease agreement for equipment for $5$ years, beginning December $31,2025.$ Annual rental

payments of $$49,000$ are to be made at the beginning of each lease year $($December $31).$ The interest rate used by the lessor in setting

the payment schedule is $6\%$; Oriole's incremental borrowing rate is $8\%.$ Oriole is unaware of the rate being used by the lessor. At the

end of the lease, Oriole has the option to buy the equipment for $$5,000,$ considerably below its estimated fair value at that time. The

equipment has an estimated useful life of $7$ years, with no salvage value. Oriole uses the straight$-$line method of depreciation on

similar owned equipment.

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$($a$)$

Your answer is partially correct.

Prepare the journal entries, that Oriole should record on December $31,2025.($Credit account titles are automatically indented when

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.

Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final answers to $0$ decimal places, e$.$g$.58,971.$ List all

debit entries before credit entries.$)$

Debit

Credit

December

Right$-$of$-$Use Asset

Lease Liability