Chapter 10 Homework 14 On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a operating lease. The lease requires three $22,158 lease payments (the first at the beginning of the lease and the rest at December 31 of Year 1 and Year 2). The present value of the three annual lease payments is $63,000, using a 5.620% interest rate. The lease payment schedule follows. (Table B1. Table B.2. Table B3. and Table B4) (Use appropriate factor(s) from the tables provided. 1 polnts Payments (B) Debit (E) Ending Balance of eBook (A) Beginning Balance of Lease Liability $63,000 40,842 20,979 Interest on (C) (D) Debit Credit Lease Lease Liability 6.003% x (A) + Lease Liability (D) (B) $22,158 Cash Lease Liability (A) (C) ament $22,158 22,158 22,158 Date Print Jan. 1, Year 1 Dec. 31, Year 1 $40,842 20,979 2,295 1,179 19,863 20,979 Dec. 31, Year 2 $3,474 $63,000 $66,474 References Required: 1. Prepare the January 1 journal entry at the start of the lease to record any asset or liability. 2. Prepare the January 1 journal entry to record the first $22,158 cash leasse payment 3. Prepare the December 31 journal entry to record amortization at the end of (a) Year 1, (b) Year 2, and (c Year 3. 4. Prepare the December 31 journal entry to record the $22158 cash lease payment at the end of (a) Year 1 and (b) Year 2 Complete this question by entering your answers in the tabs below. Required 3 Required 1 Required 2 Required 4 Prepare the January 1 journal entry at the start of the lease to record any asset or liability. View transaction list Journal entry worksheet 1 Record right-of-use asset and lease liability. Note: Enter debits before credits. Date General Joural Credit Debit Jan 01 Record entry Clear entry View general journal Required 1 Required 2 Required 3 Required 4 Prepare the January 1 journal entry to record the first $22,158 cash lease payment. View transaction list Journal entry worksheet K 1 Record beginning-year cash lease payment. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal Required 1 Required 2 Required 3 Required 4 Prepare the December 31 journal entry to record amortization at the end of (a) Year 1, (b) Year 2, and (c) Year 3. View transaction list Journal entry worksheet