Current Attempt in Progress

Wildhorse plc leased machinery from Young Ltd$.$ on Jamuary $1,2022.$ The lease term was for $8$ years, with equal annual rental payments of $5,700$ 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 $6,000.$ The machinery has a useful life of $10$ years and a fair value of $44,000.$ The implicit rate of the lease is not known to Wildhorse Wildhorse's incremental borrowing rate is $8\%$

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Prepare Wildhorse's $2022$ joumal entries. $($Credit account titles are automatically indented when the omount is entered. Do not indent manually. For calculation purposes, use $5$ decimal places as displayed in the foctir table provided and round funal ansimers to O decimal places, eg $5\mathrm{.}275.$ Record journal entries in the order presented in the problem$)$

Date

Account Titles and Explanation

Debit

Credit

$$

$$

$$

$$

$$

$($To record lease liability$)$

$$

$$

$$

$$

$$

$$

$($To record lease payment$)($To record interest expense$)$

$$

$$

$($To record amortization of the right$-$of$-$use asset$)$

List of Accounts

Attempts: $0$ of $3$ used