At the beginning of 2021, VHF Industries acquired a machine with a fair value of $5,927,330 by signing a three year lease The lease is payable in three annual payments of $2 3 million at the end of each year (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided ) 5 Suppose the fair value of the machine and the lessors implicit rate were unknown at the time of the lease, but that the lessees incremental borrowing rate of interest for notes of similar risk was 7 Prepare the lessees entry at the beginning of the lease Req 5 Suppose the fair value of the machine and the lessors implicit rate were unknown at the time of the lease, but that the lessees incremental borrowing rate of interest for notes of similar risk was 7 Prepare the lessees entry at the inception of the lease (If no entry is required for a transaction event, select No journal entry required in the first account field Enter your answers in whole dollars and not in the millions of dollars Round your answers to nearest whole dollars ) Journal entry worksheet Record lease Note Enter debits before credits Date General Journal Debit Credit January 01, 2021 Right of use asset Lease payable 2) On January 1, 2021, Allied Industries leased a high performance conveyer to Karrier Company for a four year period ending December 31, 2024, at which time possession of the leased asset will revert back to Allied The equipment cost Allied $975,000 and has an expected useful life of five years Allied expects the residual value at December 31, 2024, will be $319,000 Negotiations led to the lessee guaranteeing a $378,000 residual value Equal payments under the finance sales type lease are $219,000 and are due on December 31 of each year with the first payment being made on December 31, 2021 Karrier is aware that Allied used a 6 interest rate when calculating lease payments (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided ) Required 1 Prepare the appropriate entries for both Karrier and Allied on January 1, 2021, to record the lease No Date General Journal Debit Credit 1 January 01, 2021 Right of use asset Lease payable

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At the beginning of 2021, VHF Industries acquired a machine with a fair value of $5,927,330 by signing a three-year lease. The lease is payable

At the beginning of 2021, VHF Industries acquired a machine with a fair value of $5,927,330 by signing a three-year lease. The lease is payable in three annual payments of $2.3 million at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

5. Suppose the fair value of the machine and the lessors implicit rate were unknown at the time of the lease, but that the lessees incremental borrowing rate of interest for notes of similar risk was 7%. Prepare the lessees entry at the beginning of the lease.

Req 5 =Suppose the fair value of the machine and the lessors implicit rate were unknown at the time of the lease, but that the lessees incremental borrowing rate of interest for notes of similar risk was 7%. Prepare the lessees entry at the inception of the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.)

Journal entry worksheet

Record lease.-Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01, 2021	Right-of-use asset
	Lease payable

2) On January 1, 2021, Allied Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Allied. The equipment cost Allied $975,000 and has an expected useful life of five years. Allied expects the residual value at December 31, 2024, will be $319,000. Negotiations led to the lessee guaranteeing a $378,000 residual value. Equal payments under the finance/sales-type lease are $219,000 and are due on December 31 of each year with the first payment being made on December 31, 2021. Karrier is aware that Allied used a 6% interest rate when calculating lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the appropriate entries for both Karrier and Allied on January 1, 2021, to record the lease.