(b) Prepare the journal entries for Windsor for 2022 and 2023.

(c) Suppose Windsor incurs inti direct costs of 800 relates to the lease. Prepare the journal entries for 2022.

Swifty AG leases a piece of equipment to Windsor SA on January 1, 2022. The lease agreement called for annual rental payments of 65,887 at the beginning of each year of the 4 -year lease. The equipment has an economic useful life of 6 years, a fair value of 28,500, and a book value of 623,500 . Both parties expect a residual value of 68,000 at the end of the lease term, though this amount is not guaranteed. Swifty set the lease payments with the intent of earning a 5%6 return, and Windsor is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is correct Prepare the lease amortization schedule(s) for Windsor for all 4 years of the lease (Round arswers to 0 decimal places, eg. 5,275.)