Exercise 15-33 (Static) Nonlease payments; lessor and lessee [LO15-2, 15-7] On January 1, 2024, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease designed to earn NRC a 12% rate of return for providing long-term financing. The lease agreement specified the following 1. Ten annual payments of $55,000 beginning January 1, 2024, the beginning of the lease and each December 31 thereafter through 2032 2. The estimated useful life of the leased equipment is 10 years with no residual value. Its cost to NRC was $316,412 3. The lease qualifies as a finance lease/sales-type lease 4 A 10-year service agreement with Quality Maintenance Company was negotiated to provide maintenance of the equipment as required Payments of $5,000 per year are specified, beginning January 1, 2024 NRC was to pay this cost as incurred, but lease payments reflect this expenditure 5. A partial amortization schedule, appropriate for both the lessee and lessor, follows: Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1 PVA of $1 PVA of S1. EVAD of $1 and PVAD of 5) Payments Effective Interest (12% w Outstanding balance) Decrease in Salance Outstanding Balance 316,412 1/1/2024 50,000 12/31/2024 50,000 12/31/2022 50,000 10,000 266,412 0.12(266,412) - 31,969 0.32(248,381) 29,006 28,031 248,381 20,194 220,187 Required: 1 Prepare the appropriate entries for the lessee related to the lease on January 1, 2024 and December 31, 2024 2. Prepare the appropriate entries for the lessor related to the lease on January 1, 2024 and December 31, 2024 Prepare the appropriate entries for the lessor related to the lease on January 1, ZUZ4 and December 31, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate entries for the lessee related to the lease on January 1, 2024 and December 31, 2024. Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 Record lease by lessee. Note: Enter debits before credits Date January 01, 2024 General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 > 2. Prepare the appropriate entries for the lessor related to the lease on January 1, 2024 and December 31, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate entries for the lessee related to the lease on January 1, 2024 and December 31, 2024. Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 21 3 4 Record the cash payment. Note: Enter debits before credits. Date January 01, 2024 General Journal Debit Credit Record entry Clear entry View general journal 2. Prepare the appropriate entries for the lessor related to the lease on January 1, 2024 and December 31, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 21 Prepare the appropriate entries for the lessee related to the lease on January 1, 2024 and December 31, 2024. Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 2 3 4 Record the cash payment. Note: Enter debuts before credits Date December 31, 2024 General Journal Debit Credit Clear entry Record entry View general journal Required 1 Required 2 > Prepare the appropriate entries for the lessor related to the lease on January 1, 2024 and December 31, 2024 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate entries for the lessee related to the lease on January 1, 2024 and December 31, 2024. Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 Record the amortization. Note: Enter debts before credits, Date December 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 > Prepare the appropriate entries for the ressor related to the lease on January 1, 2024 and December 31, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate entries for the lessor related to the lease on January 1, 2024 and December 31, 2024. Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list 4 Journal entry worksheet ces 1 2 3 Record lease by lessor. Note: Enter debits before credits Date January 01, 2024 General Journal Debit Credit Record entry Clear entry View general journal < Required 1 Required 2 2. Prepare the appropriate entries for the lessor related to the lease on January 1, 2024 and December 31, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate entries for the lessor related to the lease on January 1, 2024 and December 31, 2024, Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 Record the cash received (include maintenance fee accrual). Note: Enter debits before credits. Date January 01, 2024 Record entry General Journal Debit Credit Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate entries for the lessor related to the lease on January 1, 2024 and December 31, 2024. Note: Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 Record cash received by lessor. Note: Enter debits before credits. Date December 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal < Required 1 Required 2 >