Finance Lease Lessee

On June 30, 2023, Hoosiers, Inc. leased a machine that assembles basketballs from Remember the Titans Company. Terms of the lease required Hoosiers to make semiannual lease payments of $1,063,445 over a four-year period. Payments are due June 30 and December 30 of each year beginning June 30, 2023. The useful life of the machine is four years, and Remember the Titans implicit annual interest rate is 12% and is known by Hoosiers.

A. Prepare all of Hoosiers 2023 journal entries related to this lease.

B. What is reported on Hoosiers 2023 Income Statement related to this lease? (Be specific)

C. What is reported on Hoosiers Balance Sheet related to this lease