Python Company leased equipment from Hope Leasing on January 1, 2021 Hope recently purchased the equipment at a cost of $366,529 Other information Lease term 5 years Annual payments $ 85,000 on January 1 each year Life of asset 5 years Fair value of asset $ 366,529 Implicit interest rate 8 Incremental rate 8 There is no expected residual value Required Prepare appropriate journal entries for Python for 2021 Assume straight line depreciation and a December 31 year end (If no entry is required for a transaction event, select No journal entry required in the first account field Round your answers to the nearest whole dollar amounts )

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Question: Python Company leased equipment from Hope Leasing on January 1, 2021. Hope recently purchased the equipment at a cost of $366,529. Other information: Lease term

Python Company leased equipment from Hope Leasing on January 1, 2021. Hope recently purchased the equipment at a cost of $366,529.

Other information:
Lease term		5 years
Annual payments	$	85,000 on January 1 each year
Life of asset		5 years
Fair value of asset	$	366,529
Implicit interest rate		8%
Incremental rate		8%

There is no expected residual value. Required: Prepare appropriate journal entries for Python for 2021. Assume straight-line depreciation and a December 31 year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.)

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