Exercise 15-27 (Algo) Lessee; lessee guaranteed residual value [LO15-2, 15-6)On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31,2027, at which time possession of the leased asset will revert back to Aque. The equipment cost Aque $420,045 and has an expected economic life of five years. Aque and Maywood expect the residual value at December 31, 2027 to be $57,000.• Negotiations led to Maywood guaranteeing a $80.500 residual value.Equal payments under the lease are $14,000 and are due on December 31 of each year with the first payment being made onDecember 31, 2024.Maywood is aware that Aqua used a 6% interest rate when calculating lease payments.Note: Use tables, Excel, or a financial calculator Ya$1. Pof31 EVA of $1. PVA of 55. EVAD of 51 and PVAD of 33Required:1.5 2. Prepare the appropriate entries for Maywood on January 1, 2024 and December 31, 2024 related to the leaseNote: If no entry is required for a transaction/event, select "No journal entry required in the first account feld. Do not roundintermediate calculations. Round your final answers to the nearest whole dellaJournal entry worksheetRecord the beginning of the lease for Maywood HydrauksNerder dit before creditDate01. 2024 Night-of-useGeral JournalChDWal

On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Aqua .The equipment cost Aque $420,045 and has an expected economic life of five years Aque and Maywood expect the residual value at December 31, 2027, to be $57,000 Negotiations ied to Maywood quarenteeing a $80.500 residual value. Equal peyments under the lease are $154,000 and are due on December 31 of each year with the first payment being made on December 31, 2024 Maywood is aware that Aques used a 6% interest rate when calculating lease payments Note Use tables, Excel, or a financial calculator YAI PYES EVA AL PVA ESS EVAD and EVADE Required: 162 2024

On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Aqua .The equipment cost Aque $420,045 and has an expected economic life of five years Aque and Maywood expect the residual value at December 31, 2027, to be $57,000 Negotiations ied to Maywood quarenteeing a $80.500 residual value. Equal peyments under the lease are $154,000 and are due on December 31 of each year with the first payment being made on December 31, 2024 Maywood is aware that Aques used a 6% interest rate when calculating lease payments Note Use tables, Excel, or a financial calculator YAI PYES EVA AL PVA ESS EVAD and EVADE Required: 162 2024

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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