Question 2 of 4

Question 2 of 4 View Policies Current Attempt in Progress Ayayai Ltd. signed an agreement to lease a piece of equipment for 4 years on January 1, 2020. The lease terms called for payments of $10,600 per year, to be paid at the beginning of each year. At the end of the lease, the equipment is to be returned to the lessor. The equipment had an estimated useful life of 25 years. The lessor set the annual rental payments to earn an overall return of 9% per year. The equipment cost the lessor $96,000 to manufacture. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare the journal entries on the books of Ayayai Ltd. on January 1, 2020 and on December 31, 2020, assuming adjusting journal entries are done annua Ily and that Ayayai follows ASPE. (Credit account titles 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 O for the amounts.) Date Account Titles and Explanation Debit Credit