Big Bucks leased equipment to Shannon Company on July 1, 2021. The lease payments were calculated to provide the lessor a 8% return. Nine annual lease payments of $38,000 are due each July 1, beginning July 1, 2021. (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 journal entries to record the lease by Shannon at July 1, 2021, and at December 31, 2021, the end of the reporting period. Consider this to be a finance lease.

2. Prepare the journal entries to record the lease by Shannon at July 1, 2021, and at December 31, 2021, the end of the reporting period. Consider this to be an operating lease.

Required 1 Required 2 Prepare the journal entries to record the lease by Shannon at July 1, 2021, and at December 31, 2021, the end of the reporti Consider this to be a finance lease. (If no entry is required for a transaction/event, select "No journal entry required" in the fi field. Round your answers to the nearest whole dollar amounts.) View transaction list Journal entry worksheet 1 2 3 4 Record the lease Note: Enter debits before credits Date July 01, 2021 General Journal Debit Credit Required 1 Required 2 Prepare the journal entries to record the lease by Shannon at July 1, 2021, and at December 31, 2021, the end of the repo Consider this to be an operating lease. (If no entry is required for a transaction/event, select "No journal entry required" in account field. Round your answers to the nearest whole dollar amounts.) View transaction list Journal entry worksheet 1 2 3 4 > Record the lease. Note: Enter debits before credits. Date July 01, 2021 General Journal Debit Credit