D E F G 6 1 Problem 10. 2 Lessor leases asset to Lessee on 1/1/2020. Lease term is 8 years. Lease payment is $97,580.60/year with 3 the first payment due at the inception of the lease. The lease payment includes $10,000 payment for hazard insurance and taxes that the Lessor is paying on Lessee's behalf. Lessor's implicit rate is 12%/year 5 and this rate is known by Lessee. Required 8 1. Record the lease in the Lessee's books on 1/1/2020. 9 10 11 Enter your entries below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. 12 Entries by Lessee at Inception of lease on 1/1/2020: 13 14 Account Debit Credit 15 1 16 1 17 1 18 1 19 20 21 22 2. Redo #1 assuming that the $10,000 payment is for an annual service contract (on the leased asset) 23 rather than hazard insurance and taxes. 24 25 Enter your entries below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box 26 27 Account Debit Credit 28 2. 29 2 30 2 31 2 32 2 33 55 C 1 Columni 2 Accumulated lepreciation (Bal. Sht) 3 Cash (Bal. Sht 4 Deferred rent revenue (Bal. Sht) 5 Equipment (B. 1. Sht) 6 Lease payable (Bal. Sht) 7 Lease receivallle (Bal. Sht) 8 Note payable Bal. Sht) 9 Prepaid service contract (Bal. Sht) 10 Right-of-Use a set (Bal. Sht) 11 Warehouse (ebl. Sht) 12 Amortization xpense (Inc. Stmt) 13 Cost of goods sold (Inc. Stmt) 14 Gain on sale of warehouse (Inc. Stmt) 15 Interest experse (Inc. Stmt) 16 Interest revenue (Inc. Stmt) 17 Lease expensi (Inc. Stmt) 18 Lease revenue (Inc. Stmt) 19 Misc. expenses (Inc. Stmt) 20 Rent revenue Inc. Stmt) 21 Sales revenue "Inc. Stmt) 22 23 24 25 26 27 28 29 30 31