Accounting for Leases (FSET) 2. Using the financial statement effects template, report the entries that Hanna Corporation would make on January 3 and Detember 31 to record this lease assuming 1. the lease is reported as an operating lease. il. the lease is reported as a finance lease. - Note: Use negative signs with your answers, when appropriate. - Note: Select 'N/R' as your answer if a part of the accounting equation is not affected. - Note: Round answers to the nearest whole dollar. 1. Operating Lease: ii. Finance Lease: b. Explain how the financial statement effects differ between the two treatments. The amount of expense recognized on the income statement in the early years of a finance lease is greater than experse recognized in the early years of an aperating lease