Deal Leasing leased equipment to Hand Company on January 1, 2019. The lease payments were calculated to provide the lessor a 10% return, the implicit rate is known by the lessee. The annual Lease payments of $60,000 are due at the beginning of each year beginning January 1, 2019 and on December 31 thereafter. The asset cost Deal $350,000 to manufacture. Consider this to be a finance lease. Round your answers to the nearest whole dollar amounts.

1. What will Hand record as a right-of-use asset and lease payable. Show the calculation.

2. Prepare an amortization table for January 1, 2019 to December 31, 2020.

3. Prepare all journal entries to record the lease by Hand (lessee) at January 1, 2019.

4. Prepare all journal entries to record the lease by Hand (lessee) at December 31, 2019, the end of the first reporting period assuming the effective interest method.

5. Prepare all journal entries to record the lease by Deal (lessor) at January 1, 2019