On January 1, 2024, Harlon Consulting entered into a three-year lease for new office space agreeing to lease payments of: $12,700 In2024, $9,800 in 2025 and $6,900 in 2026. Payments are due on December 31 of each year with the first payment being made onDecember 31, 2024. Harlon is aware that the lessor used a 6% Interest rate when calculating lease payments.Required:1-4. Prepare the appropriate entries for Harlon Consulting on January 1, 2024, December 31, 2024, 2025 and 2026 to record thelease.Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No Journal entry required" Inthe first account field. Round your Intermediate and final answers to nearest whole dollar. (FV of $1, PV of $1, FVA of $1. PVA of $1,FVAD of $1 and PVAD of $1)No1234567DateJanuary 01, 2024 Right-of-use assetLease payableDecember 31, 202 Interest expenseLease payableCashDecember 31, 203 Amortization expenseRight-of-use assetDecember 31, 202 Interest expenseRight-of-use assetCashAnswer is not complete.General JournalDecember 31, 203 Amortization expenseRight-of-use assetDecember 31, 202 Interest expenseRight-of-use assetCashDecember 31, 202 Amortization expenseRight-of-use asset33››> X>>DebiCr

Answered: 1-4. Prepare the appropriate entries…

1-4. Prepare the appropriate entries for Harlon Consulting on January 1, 2024, December 31, 2024, 2025 and 2026 to record the lease.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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