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Ahsoka Company leases a piece of equipment from Barriss Company on January 1, Year 1. The following information pertains to the lease: 1. It is
Ahsoka Company leases a piece of equipment from Barriss Company on January 1, Year 1. The following information pertains to the lease: 1. It is classified as an operating lease 2. Ahsoka Company correctly recognizes a lease liability and right-of-use asset of $20,476 at the conception of the lease 3. The lease calls for annual rental payments of $5,424 at the beginning of each year for 4 years 4. The equipment has an economic useful life of 6 years. 5. Barriss uses a 4% implicit rate: this rate is known to Ahsoka. What journal entry(ies) does Ahsoka record on December 31, Year 1? (Rounded to the nearest dollar) Lease Expense 5,424 602 Lease Liability 4,822 Right-of-Use Asset 819 Interest Expense 819 Lease Liability Amortization Expense 3,413 Right-of-Use Asset 3,413 Lease Expense 5,424 Lease Liability 819 Right-of-Use Asset 4,605 Interest Expense 602 Lease Liability 602 Amortization Expense 5.119 Right-of-Use Asset 5.119
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