Can you help me with these two problems? I have partial answers, but it makes no sense to me.

PROBLEMS 15-46. 1. 2013 July 1 Leased Equipment * Obligations under Capital Leases To record lease. *PV = $188,000 + $188,000(PVAF ) PV = $188,000 + $188,000( PV = ) $ or with a business calculator: First toggle so that the payments are assumed to occur at the beginning (BEG) of the period. PMT = $188,000; N = 10; I = 9% PV = 1 Lease Expense 6,000 Obligations under Capital Leases Cash 188,000 194,000 To record first lease payment. Dec. 31 Interest Expense * Interest Payable on Obligations under Capital Leases *Interest expense: ($1,315,098 - $188,000) 0. 31 /12 = $ Amortization Expense on Leased Equipment Accumulated Amortization on * Leased Equipment *Amortization expense: $ 31 /15 = /12 = $ Prepaid Lease Expense ($6,000 6/12) Lease Expense 3,000 3,000 2. 15-47. 1. York Books: 2013 Jan. 1 Cash Deferred Initial Direct Costs 18,000 To record initial direct costs. 1 Rent Revenue Cash 354,000* 298,000 Unearned Rent Revenue 56,000 To record receipt of first annual rental payment. *($1,400,000 0.24) + $18,000 = $354,000 ($1,400,000/5) + $18,000 = $298,000 18,000 (Note: The $18,000 received by York to reimburse executory costs is included as part of revenue. It could also have been recorded as a reduction in executory costs.) Dec. 31 Amortization of Initial Direct Costs Deferred Initial Direct Costs 3,600 3,600 To amortize initial direct costs over 5 years. 31 Depreciation Expense on Leased Equipment Accumulated Depreciation on Leased Equipment 222,500 To depreciate leased equipment. *($1,900,000 - $120,000)/8 = $222,500 2017 Jan. 1 To record receipt of final annual rental payment. Dec. 31 To amortize initial direct costs. 222,500* 31 Depreciation Expense on Leased Equipment Accumulated Depreciation on Leased Equipment To depreciate leased equipment. 15-47. (Concluded) 2. Echo Books: 2013 Jan. 1 Rent Expense Prepaid Rent Cash To record first rental payment including executory costs. 2017 Jan. 1 Prepaid Rent Rent Expense 112,000 Cash To record final rent payment. 56,000 Problem 15-46 Entries for Capital Lease-Lessee; Lease Criteria Extractor Company leased a machine on July 1, 2013, under a 10-year lease. The economic life of the machine is estimated to be 15 years. Title to the machine passes to Extractor Company at the expiration of the lease, and thus, the lease is a capital lease. The lease payments are $194,000 per year, including executory costs of $6,000 per year, all payable in advance annually. The incremental borrowing rate of the company is 9%, and the lessor's implicit interest rate is unknown. Extractor Company uses the straight-line method of amortization and the calendar year for reporting purposes. 0 1 1. Give all entries on the books of the lessee relating to the lease for 2013. When required, round your answers to the nearest whole dollar. For compound transactions, if an amount box does not require an entry, leave it blank. 2. Assume that the lessor retains title to the machine at the expiration of the lease, that there is no bargain renewal or purchase option, and that the fair value of the equipment is $1,420,000 as of the lease date. Using the criteria for distinguishing between operating and capital leases according to FASB ASC Topic 840, what would be the amortization expense for 2013? Round your answer to the nearest whole dollar. Problem 15-47 Operating Lease-Lessee and Lessor York Industries leases a large specialized machine to Echo Company at a total rental of $1,400,000, payable in five annual installments in the following declining pattern: 24% in the first two years, 20% in the third and fourth years, and 12% in the last year. The lease begins January 1, 2013. In addition to the rent, Echo is required to pay annual executory costs of $18,000 to cover unusual repairs and insurance. The lease does not qualify as a capital lease for reporting purposes. York incurred initial direct costs of $18,000 in obtaining the lease. The machine cost York $1,900,000 to construct and has an estimated life of eight years with an estimated residual value of $120,000. York uses the straight-line depreciation method on its equipment. Both companies report on a calendar-year basis. 1. Prepare the journal entries on York's books for 2013 and 2017 related to the lease. Round your answers to the nearest dollar. For compound transactions, if an amount box does not require an entry, leave it blank. 2. Prepare the journal entries on Echo's books for 2013 and 2017 related to the lease. Round your answers to the nearest dollar. For compound transactions, if an amount box does not require an entry, leave it blank