20

Ivanhoe Co. as lessee records a finance lease of machinery on January 1, 2021. The seven annual lease payments of $838,000 are made at the end of each year. The present value of the lease payments at 9% is $4,218,000. Ivanhoe uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value).

(a)

Prepare an amortization table for 20121 and 2022.

Ivanhoe Co. Lease Amortization Schedule
Date		Annual Lease Receipt/Payment		Interest on Receivable/Liability		Reduction in Receivable/Liability		Lease Receivable/Liability
1/1/21								$
12/31/21		$		$		$
12/31/22

(b) Prepare all Ivanhoe's journal entries for 2021