Required 1 Required 2Prepare the journal entry, if any, on January 1 and on December 31 of the third year, 2026 for the lessee to account for thereassessment.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round yourintermediate and final answers to nearest whole dollar.No123DateJanuary 01, 2026 Right-of-use assetLease payableDecember 31, 202 Interest expenseLease payableCashGeneral JournalDecember 31, 202 Amortization expenseRight-of-use asset< Required 1✓33 3Debit64,6942,588 X27,412 XRequired 2 >Credit64,69430,000 On January 1, 2024, Rick's Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease forthree years.• Rick's had no significant economic incentive as of the beginning of the lease to exercise the three-year extension option. Annuallease payments are $30,000 due on December 31 of each year, calculated by the lessor using a 4% discount rate.The expected useful life of the asset is nine years, and its fair value is $225,000.• Assume that at the beginning of the third year, January 1, 2026, Rick's had made significant improvements to the truck whosecost could be recovered only if it exercises the extension option, creating an expectation that extension of the lease was"reasonably certain."• The relevant interest rate at that time was 5%.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:1. Prepare the journal entry, if any, on January 1 and on December 31 of the third year, 2026 for the lessee to account for thereassessment.2. Prepare the journal entry, if any, on January 1 and on December 31 of the third year, 2026 for the lessor to account for thereassessment.

"Lease" is a contract where one party leases it's assets such as land, property, equipment to…

Prepare the journal entry, if any, on January 1 and on December 31 of the third year, 2026 for the lessee to account for the reassessment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. No 1 2 3 Date January 01, 2026 Right-of-use asset Lease payable December 31, 202 Interest expense Lease payable Cash General Journal December 31, 202 Amortization expense Right-of-use asset 33 33 3 › › Debit 64,694✔ 2,588 X 27,412 x Credit 64,694 30,000

Prepare the journal entry, if any, on January 1 and on December 31 of the third year, 2026 for the lessee to account for the reassessment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. No 1 2 3 Date January 01, 2026 Right-of-use asset Lease payable December 31, 202 Interest expense Lease payable Cash General Journal December 31, 202 Amortization expense Right-of-use asset 33 33 3 › › Debit 64,694✔ 2,588 X 27,412 x Credit 64,694 30,000

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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can u help me with the journal entries with working ?
Thornhill Equipment (lessor) leased a construction crane to Vanier Construction (lessee) on January 1, 2023. The following information relates to the leased asset and the lease agreement. (Click the icon to view the data.) Both companies use the straight-line depreciation method for cranes, and they both have December 31 year-end dates. Required Requirement a. Evaluate how the lessor (Thornhill Equipment) should account for the lease transaction. Start by determining the present value of the lease payments (PVLP). Then calculate the percentage of the PVLP compared to the fair value of the leased asset. (Use a financial calculator for all present value computations. Enter all currency values as positive amounts rounded to the nearest whole dollar. Round the percentage to the nearest whole percent.) PVLP Fair value of asset PVLP as % of fair value % Leased asset and lease agreement - Cost of crane to lessor 100,000 Thornhill's normal selling price for crane $ 146,913 Useful life…
ompany signs an agreement on January 1, 2020, to lease equipment to Plote Company. The following information relates to this agreement. 1. 2 3. 4. 5. 6. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. The fair value of the asset at January 1, 2020, is $80,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $7,000, none of which is guaranteed. The agreement requires equal annual rental payments of $25,563 to the lessor, beginning on January 1, 2020. The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 4% and is unknown to the lessee. Plote uses the straight-line depreciation method for all equipment. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
please give narrations for each entry use commas and dollar sign no copy paste answer step by step
please answer in text form with proper workings and explanation for each and every entry , part and steps with concept and introduction no AI no copy paste
Note: it asks about Green's balance sheet. See photos please.
answer in text form please (without image), Note: .Every entry should have narration please
answer in text form with explanation , computation for every steps
please explain answer in detail describe each and every point and step with full explantion , computation , formulation thanks
Please do not give solution in image format ?