AutoSave Ch CH Class Exercise 7.docx - Seved to this PC- Scarch sharon winn SW 23 File Home Insert Draw Design Layout References Mailings Review View Help Share Comments Find - - T I X cut [ Copy Format Painter Clipboard Calibri (Body 11 A A A A BIUA B TUX, X ADA ccpa AaBbccid AaBbc 1 Normal 1 No Spac.. Heading 1 Heading 2 Subtitle Subtle Em.. Peste Title Replace Select Dictate Editor Reuse Files Font Paragraph Styles Editing Voice Edtor Fouse Files E2L1 (L01, 4) (Lessee Entries: Finance Lease with No Residual Value) DU Journeys enters into an agreement with Traveler Inc. to lease a car on December 31, 2019. The following information relates to this agreement. 1. The term of the non-cancelable lense is 3 years with no renewal or bargain purchase option. The remaining economic life of the car is 3 years, and it is expected to have no residual value at the end of the lease term 2. The fair value of the car wus $15,000 at commencement of the lease. 3. Annual payments are required to be made on December 31 at the end of each year of the lease beginning December 31, 2020. The first payment is to be of an amount of $5.552.82, with each pay ment increasing by a constant rate of 5% from the previous payment (ie, the second payment will be 55,830.46 and the third and final payment will be $6,121.90). 4. Journeys' incremental borrowing rates. The rule implicit in the leuse is unknown. 5. DU Journey uses straight-line depreciation for all similar can Instructions 1. Prepare DU Journeys' Journal entries for 2019,2020, and 2021. . Page 2 of 2 33 words Text Predictions on Accessibility: Good to go FOCUS 100% . On E. 1 9:56 AM 11/0/2021