3 4 All answers must be completed in Excel using the blue boxes provided. Make sure to show all calculations in the blue boxes! Any workspace provided is NOT for marks. Keel Corporation entered into a five-year, non-cancellable capital equipment lease with Noro Corporation. The equipment has an economic life of 10 years with a no estimated residual value at the end of its economic life. Keel Corporation has a December 31st year-end and is given an option to purchase the equipment at the end of the lease for $1. The following is the correct amortization schedule prepared for the first 2 payments: 7 Principal Date Lease payment Interest Balance reduction 9 1/Apr/22 $ 41,699 10 1/Apr/22 $10,000 $ 10,000 31,699 11 1/Apr/23 10,000 3,170 6,830 24,869 2 REQUIRED: (1). Calculate the amount of depreciation expense on the leased equipment Keel Corporation 8 $ 13 REQUIRED (1). Calculate the amount of depreciation expense on the leased equipment Keel Corporation would record for its year ending December 31, 2022. Show your calculation in the blue box provided. Round to the nearest whole number using the ROUND formula. 15 16 Depreciation expense (2). Prepare the following journal entries as described below. Make sure to select the most appropriate account name from the drop-down boxes provided. Round all answers to the nearest whole dollar using the ROUND Formula. If an account is to be used twice, please LIST IT TWICE rather than combining into one row. 17 19 Credit 18 Date Account Title Debit 20 ######## 21 Y/E 22 Accrue interest on equipment lease at year-end. 3 Date Account Title Debit 1/Apr/23 ROUND TO THE NEAREST WHOLE NUMBER USING THE ROUND FORMULA Credit ROUND TO THE NEATVAILE DeprecaTOTT Expense 16 (2). Prepare the following journal entries as described below. Make sure to select the most appropriate account name from the drop-down boxes provided. Round all answers to the nearest whole dollar using the ROUND Formula. If an account is to be used twice, please LIST IT TWICE rather than combining into one row. 17 ROUND TO THE NEAREST WHOLE NUMBER USING THE ROUND FORMULA 18 19 Date Account Title Debit Credit 20 ####### 21 Y/E 22 Accrue Interest on equipment lease at year-end. 23 24 Date Account Title Debit Credit 25 1/Apr/23 26 27 P2 28 9 Record second lease payment made to Noro Corporation. ROUND TO THE NEAREST WHOLE NUMBER USING THE ROUND FORMULA