Business, 17.10.2020 19:01 xaniawashington

The lease agreement and related facts indicate the following: Leased equipment had a retail cash selling price of $420,000. Its useful life was five years with no residual value. The lease term is Five years and the lessor paid $325,000 to acquire the equipment (thus, selling profit). Lessor’s implicit rate when calculating annual lease payments was 10%. Annual lease payments beginning January 1, 2018, the beginning of the lease, were $100,723. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $8,700. 1. & 2. Prepare the appropriate entries for the lessor to record the lease and the initial payment at its commencement and any entry(s) necessary at December 31, 2018, the fiscal year-end. (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.)

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The lease agreement and related facts indicate the following: Leased equipment had a retail cash sel...