Current Attempt in Progress Crane Corporation enters into a 5-year lease of equipment on December 31, 2019, which requires 5 annual payments of $43,200 each, beginning December 31, 2019. In addition, Crane guarantees the lessor a residual value of $18,000 at the end of the lease. However, Crane believes it is probable that the expected residual value at the end of the lease term will be $8,000. The equipment has a useful life of 5 years. Assume that for Lost Ark Company, the lessor collectibility of lease payments is probable and the carrying amount of the equipment is $150,000. Prepare Lost Ark's 2019 and 2020 journal entries, assuming the implicit rate of the lease is 9% and this is known to Crane. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places eg. 5,275. Record journal entries in the order presented in the problem.) Click here to view factor tables. Account Titles and Explanation Debit Credit (To record the lease) (To record receipt of lease payment) e Textbook and Media List of Accounts Attempts: 0 of 5 used Submit Answer Sono for Liter . Skysong, Inc. has entered an agreement to lease an old warehouse with a useful life of 5 years and a fair value of $40.000 from United Corporation. The agreement stipulates the following Rental payments of $9.276 are to be made at the start of each year of the 5-year lease. No residual value is expected at the end of the lease. Skysong must reimburse United each year for any real estate taxes incurred for the year. Last year, the cost of real estate taxes was $800, though these costs vary from year to year. Skysong must make a payment of $500 with the rental payment each period to cover the insurance United has on the warehouse Skysong paid legal fees of $1,000 in executing the lease . Assuming Skysong's incremental borrowing rate is 8% and the rate implicit in the lease is unknown, prepare the journal entry to record the initial lease liability and right-of-use asset for Skysong (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places, es. 5.275) Click here to view factor tables. Account Titles and Explanation Right-of-Use Asset Debit Credit Cash Lease Liability e Textbook and Media List of Accounts Attempts: Oof 5 used Submit Answer Save for Later Last saved 6 minutes ago Saved work will be auto-submitted on the due date. View Policies Current Attempt in Progress Pina Corporation entered into a finance lease to lease equipment from Highlander, Inc. on January 1, 2020. The lease calls for annual lease payments of $14,000, beginning on December 31, 2020 for each of the 5 years of the lease. In addition, Highlander, Inc. wilt pay Pina Corporation $4,000 as a cash incentive for entering the lease by January 1, 2020. In relation to the lease agreement. Pina incurred the following costs. Commissions for selling agents $600 Internal engineering costs 500 Legal fees resulting from the execution of the lease 2,600 If the value of the lease liability is $64,819, what amount will Pina record as the value of the right-of-use asset on January 1, 2020, at commencement of the lease? Value of the right-of-use asset $ e Textbook and Media Save for Later Attempts:0 of 5 used Submit Answer Current Attempt in Progress Wildhorse Coleased machinery from Young, Inc. on January 1, 2020. The lease term was for 8 years, with equal annual rental payments of $5,200 at the beginning of each year. In addition, the lease provides an option to purchase the machinery at the end of the lease term for $3,000, which Wildhorse is reasonably certain it will exercise as it believes the fair value of the machinery will be at least $5,000. The machinery has a useful life of 10 years and a fair value of $45,000. The implicit rate of the lease is not known to Wildhorse. Wildhorse's incremental borrowing rate is 9% Prepare Wildhorse's 2020 journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use S decimal places as displayed in the factor table provided and round final answers to decimal places, eg. 5.275. Record journal entries in the order presented in the problem.) Click here to view factor tables Account Titles and Explanation Debit Credit Date (To record lease liability) (To record lease payment) (To record interest expense) (To record amortization of the right-of-use asset) e Textbook and Media