22

ACME Manufacturing Ltd. has entered into an agreement to lease manufacturing equipment. The following terms are included in the lease: The lease is entered into on January 1,2022 . The equipment can be purchased for $125,000. The company uses straightline depreciation. Requirement 1: Prepare the journal entry on January 1, 2022 to recognize the lease. Enter Debits before Credits and enter amounts in order of HIGHEST TO LOWEST dollar value. If a cell does not require a number leave it blank or enter 0. Rexwirement z: Requirement 3 What it is the value of the outstanding lease liability on January 31,20227$ Requirement 4: Record the entry for the depreciation expense on January 31, 2022. Enter Debits before Credits and entar amounts in order Of HIGHEST TO LOWEST dollar value. If a cell does not require a number leave it blank or enter 0 . Requirement 5: What is the carrying value of the leased equipment on December 31,2022?$