On January 1, 2024, Ghosh Industries leased a high-performance conveyer to Karrier Company for a four-year...

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On January 1, 2024, Ghosh Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Ghosh. The equipment cost Ghosh $957,400 and has an expected useful life of five years. Ghosh expects the residual value at December 31, 2027, will be $301,400. Negotiations led to the lessee guaranteeing a $341,400 residual value. Equal payments under the finance/sales-type lease are $201,400 and are due on December 31 of each year with the first payment being made on December 31, 2024. Karrier is aware that Ghosh used a 6% interest rate when calculating lease payments. Note: Use Excel, or a financial calculator. Required: 1. Prepare the appropriate entries for Karrier on January 1, 2024, to record the lease. 2. Prepare all appropriate entries for Karrier on December 31, 2024, related to the lease. Record the beginning of the lease for Karrier. Record the lease payment for Karrier. Note: Enter debits before credits. Date January 01, 2024 Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2024 General Journal Debit Credit Record amortization of the right-of-use asset for Karrier. Note: Enter debits before credits. Date December 31, 2024 General Journal Debit Credit On January 1, 2024, Ghosh Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Ghosh. The equipment cost Ghosh $957,400 and has an expected useful life of five years. Ghosh expects the residual value at December 31, 2027, will be $301,400. Negotiations led to the lessee guaranteeing a $341,400 residual value. Equal payments under the finance/sales-type lease are $201,400 and are due on December 31 of each year with the first payment being made on December 31, 2024. Karrier is aware that Ghosh used a 6% interest rate when calculating lease payments. Note: Use Excel, or a financial calculator. Required: 1. Prepare the appropriate entries for Karrier on January 1, 2024, to record the lease. 2. Prepare all appropriate entries for Karrier on December 31, 2024, related to the lease. Record the beginning of the lease for Karrier. Record the lease payment for Karrier. Note: Enter debits before credits. Date January 01, 2024 Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2024 General Journal Debit Credit Record amortization of the right-of-use asset for Karrier. Note: Enter debits before credits. Date December 31, 2024 General Journal Debit Credit