Required $1$

Required $2$

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.

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit$],[1,$January $01,2024$ Ri$,$Right$-$of$-$use asset,$(>),411,834,],[,,$Lease payable,$(2),,411,834],[2,$January $01,2024$ L$,$Lease payable,$(,24,628\backslash$times $,],[,,$Maintenance expense,$(,38,372\backslash$times $,],[,,$Cash,$(,,63,000\backslash$times $],[3,$December $31,202$ I,$2$ Interest expense,$(,,],[,,$Lease payable,$(2),,],[,,$Prepaid maintenance expense,$(,,],[,,$Cash,$(,,],[,,,,,],[4,$December $31,202,2$ Amortization expense inm,$(,,],[,,$Right$-$of$-$use asset,V$,,]]$

Required $1$ Required $1$

Required $2$

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.On January $1,2024,$ NRC Credit Corporation leased equipment to Brand Services under a finance$/$sales$-$type lease designed to earn

NRC a $11\%$ rate of return for providing long$-$term financing. The lease agreement specified the following:

Ten annual payments of $$70,000$ beginning January $1,2024,$ the beginning of the lease and each December $31$ thereafter

through $2032.$

The estimated useful life of the leased equipment is $10$ years with no residual value. Its cost to NRC was $$411,834.$

The lease qualifies as a finance lease$/$sales$-$type lease.

A $10-$year service agreement with Quality Maintenance Company was negotiated to provide maintenance of the equipment as

required. Payments of $$7,000$ per year are specified, beginning January $1,2024.$ NRC was to pay this cost as incurred, but lease

payments reflect this expenditure.

A partial amortization schedule, appropriate for both the lessee and lessor, follows:

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Prepare the appropriate entries for the lessee related to the lease on January $1,2024$ and December $31,2024.$

Prepare the appropriate entries for the lessor related to the lease on January $1,2024$ and December $31,2024.$

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