dont give answer in image format On January 1, 2021, Wetick Optometrists leased diagnostic equipment from Southern Corp., which had purchased the equipment at acost of $1,643,565. The lease agreement specifies six annual payments of $350,000 beginning January 1, 2021, the beginning of thelease, and at each December 31 thereafter through 2025. The six-year lease term ending December 31, 2026 (a year after the finalpayment), is equal to the estimated useful life of the equipment. The contract specifies that lease payments for each year will increaseon the basis of the increase in the Consumer Price Index for the year just ended. Thus, the first payment will be $350,000, and thesecond and subsequent payments might be different. The CPI at the beginning of the lease is 140. Southern routinely acquiresdiagnostic equipment for lease to other firms. The interest rate in these financing arrangements is 11%. (FV of $1, PV of $1, FVA of $1,PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:1. Prepare the appropriate journal entries for Wetick to record the lease at its beginning.2. Assuming the CPI is 144 at that time, prepare the appropriate journal entries related to the lease for Wetick at December 31, 2021.Complete this question by entering your answers in the tabs below.Required 1 Required 2Assuming the CPI is 144 at that time, prepare the appropriate journal entries related to the lease for Wetick at December 31,2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round yourintermediate calculations and final answers to the nearest whole dollar.)No1X Answer is not complete.DateDecember 31, 202 Lease expenseInterest expenseLease payableCashGeneral Journal< Required 1› › › ›✓Required 2 >Debit180,792 XCredit

Lease is the contract between the two parties that is lessee and the lessor. The lessee is the one…

Assuming the CPI is 144 at that time, prepare the appropriate journal entries related to the lease for Wetick at December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollar.) No 1 Date December 31, 202 Lease expense Interest expense Lease payable Cash General Journal < Required 1 Required 2 > Debit 180,792 Credit

Assuming the CPI is 144 at that time, prepare the appropriate journal entries related to the lease for Wetick at December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollar.) No 1 Date December 31, 202 Lease expense Interest expense Lease payable Cash General Journal < Required 1 Required 2 > Debit 180,792 Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please answer G part with explanation. Answer was incoorect in previous solution
Concept of Reconcilation statement with an example .
remain dwlse
*Question:- r what is anticulation of the Pinarcial statement meons Elaborate.
did not fully awnser question
Define white squire
27 A company reports sales of $1,020,000, sales discounts of $2,600, sales returns and allowances of $11,600, cost of goods sold of $510,000, general and administrative expenses of $20,000, and selling expenses of $30,000. Compute gross profit.
Pls solve all Questions , Dont Disclaimer
What is the formula used for the questions without using excel?
What do the letter FIFO Stand for?
What is indirect quotation.Explain with example
Types of gap and give example with interpretation.