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**** Please help me find out what I did wrong in the included screenshots Thank you*****
On January 1,2024, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease designed to eam NRC a \(12\%\) rate of return for providing long-term financing. The lease agreement specified the following: 1. Ten annual payments of \(\$ 65,000\) beginning January 1,2024, the beginning of the lease and each December 31 thereafter through 2032.2 The estimated useful life of the leased equipment is 10 years with no residual value. Its cost to NRC was \(\$ 382,859\).3. The lease qualifies as a finance lease/sales-type lease. 4. A 10-year service agreement with Quality Malntenance Company was negotlated to provide maintenance of the equipment as required. Payments of \(\$ 4,500\) per year are specified, beginning January 1,2024. NRC was to pay this cost as incurred, but lease payments reflect this expenditure. 5. A partlal amortization schedule, approprlate for both the lessee and lessor, follows: Note: Use tables, Excel, or a financlal calculator. (FV of \(\$ 1\), PV of \(\$ 1\). FVA of \(\$ 1\), PVA of \(\$ 1\), FVAD of \(\$ 1\) and PVAD of \(\$ 1\))Effective Interest (12x * Outstanding balance)Decrease in BalanceOutstanding Balance Required: 1. Prepare the approprlate entrles for the lessee related to the lease on January 1,2024 and December 31,2024.2 Prepare the approprlate entrles for the lessor related to the lease on January 1,2024 and December 31,2024.
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Prepare the appropriate entries for the lessee related to the lease on January 1,2024 and December 31,2024. Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
No Date General Journal Debit Credit 1 January 01,2024 Right-of-use asset *382,859 Lease payable 382,8592 January 01,2024 Lease payable 65,0008 Maintenance expense 4,500 Cash 69,5003 December 31,202 Interest expense 38,143% Lease payable 26,857 Prepaid maintenance expense 4,500 Cash 69,5004 December 31,202 Amortization expense 38,288 Right-of-use asset 38,286
Complete this question by entering your answers in the tabs below.
Prepare the appropriate entries for the lessor related to the lease on January 1,2024 and December 31,2024. Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
No Date General Journal Debit Credit 1 January 01,2024 Lease receivable 0382,859 Equipment 0382,8592 January 01,2024 Cash 069,500 Lease receivable 065,000 Deferred sales revenue ox 4,500O 3 December 31,202 Cash 069,500 Lease receivable 026,857* Interest revenue 038,143 Deferred sales revenue ox 4,500
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