1. Assuming this is a sales-type lease for the Diego and a finance lease for the La Jolla, prepare a table summarizing the lease and interest payments suitable for use by either party.

2a. On the assumption that Diego Leasing Company adjust and close books each December 31, prepare journal entries relating to the lease for the company through December 31, 2020, based on data derived in the table

Prepare journal entries for Diego Leasing Company, Lessor, for 2019.

2c. On the assumption that La Jolla Company adjust and close books each December 31, prepare journal entries relating to the lease for the company through December 31, 2020, based on data derived in the table. Assume that La Jolla depreciates similar equipment by the straight-line method.

Prepare journal entries for La Jolla Company, Lessee, for 2019.

Olego Leasing Company agrees to provide La Jolla Company with equipment under a noncancelable lease for 5 years. The equipment has a 5 -year life, cost Diego $25,000, and wil have no residual value when the lease term ends. The fair value of the equipment is $30,000. La Jolla agrees to pay all executory cost: $500 per year) throughout the lease period directly to a third party. On January 1,2019 , the equipment is delivered. Diego expects a 14% retum on its net investment. The five equal annual rents are payable in advance starting January 1, 2019. Required: 1. Assuming this is a saios-type lease for the Diogo and a finance lease for the La Jolla, prepare a table summarizing the loase and interest payments suitable for use by either party. 2. Noxt Lovel On the assumption that both companies adjust and close books each Docember 31, prepare journal entries relating to the lease for both companies through Docember 31, 2020, based on data derived in the tabie. Assume that La Jolla depreciates similar equipment by the straight-dine method. 3 Diego Company 4 5 January 1,2019 6 January 1,2019 7 December 31,2019 1. January 1,2020 7. December 31,2020 10 January 1,2021 11 December 31,2021 12. January 1,2022 13 December 31,2022 14 January 1, 2023 GENERAL JOURNAL. Prepare joumal entries for Diego Leasing Company, Lessor, for 2020. GENERAL JOURNAL Prepare joumal entries for La Jolla Company, Lessee, for 2020