Graded Homework Se On January 1, 2019. Carey inc. entered into a noncancelable lease agreement, agreeing to pay $3,398 at the end of each year for 4 years to acquire a new computer system having a market value of $0.901 The expected useful site of the computer system 4 years, and the computer will be depreciated on a straight ane basis with no salvage value. The interest rate used by the lessor to determine the annual payments was 14% Under the terms of the lease. Carey has an option to purchase the computer for $ton- January 1, 2023 See Table (Use the appropriate factor by clicking on the Table link.) Required: a. Should Carey Inc. account for this sease as a financing lease or an operating lease? b. Prepare the horizontal model and record the journal entry that Carey Inc. should make on January 1, 20m (nt Fest determine the present value of future lease payments) c. Prepare the honzontal model and record the journal entry that Carey inc. should make on December 31, 2019, to recond the st d. annual lease payment of $3,398 (nt Based on your answer to part b. determine the appropriate amounts for interest and pnncipal) indicate the financial statement effect What 20192 expenses include amounts) should be recognized for this lease on the income statement for the year ended December e. The accounting for an asset acquired under a capital lease Complete this question by entering your answers in the tabs below. Reque Red Required 82 Required Cered Re WOMANGGAREV Cheggh2400 G Google www Prepare the horizontal model that Carey Inc. should make on January 1, 2019. (Me: First determine the present value of future lease payments.) (Use ants with and with By A calculations, Round your final answers to the nearest whole dollar amount.) As Balance Sheet L > Required: 8. Should Carey inc account for this lease as a financing lease or an operating lease? b. Prepare the hortzontal model and record the journal entry that Carey Inc should make on January 1, 2019 (Hint First determine the present value of future lease payments) c. Prepare the horizontal model and record the journal entry that Carey Inc. should make on December 31, 2019, to record the first annual lease payment of $3,398 (Hint Based on your answer to part b determine the appropriate amounts for interest and principal) Indicate the financial statement effect d. What expenses (include amounts) should be recognized for this lease on the income statement for the year ended December 31, 2019? e. The accounting for an asset acquired under a capital lease Complete this question by entering your answers in the tabs below. Re Required 61 Required 82 Required C1 Required C2 Required D Record the journal entry that Carey Inc. should make on January 1, 2019. (Hint: First determine the present value of future lease payments.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round up your answer to the nearest ten dollars. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) View transection Bat Journal entry worksheet < Record the capital lease transaction at the present value of future lease payments Nute: Ester debts before credts Ent General Journal Debit Credl January 1, 2022 see ja (use the appropriate rector by encking on the ra Required Shound Carey inc account for this tease as a financing ease or an operating lease b. Prepare the honzontal model and record the journal entry that Carey inc. should make on January 1, 2019 et Fest deene the present value of future lease payments) c. Prepare the nonpontal modes and record the journal entry that Carey inc shoud make on December 31, 2010, to record the st annual lease payment of $3.308 rent tased on your answer to part b determine the appropiate amounts for interest precpal) indicate the financial statement effect and a. What expenses pnclude amounts) should be recognized for this tease on the income statement for the year ended Decenter 2010 The accounting for an asset acquired under a capta lease Complete this question by entering your answers in the tabs below. Prepare the barntal model that Carey Inc, should make on December 31, 2019, to recond the first annual case get of $3,398 Bed on your lower to pet determine the pad) Assett Sinckbatte Liquify <152 Required: e. Should Carey Inc. account for this lease as a financing lease or an operating lease? b. Prepare the horizontal model and record the journal entry that Carey Inc. should make on January 1, 2013 Hint Pest determine the present value of future lease payments) c. Prepare the horizontal model and record the journal entry that Carey inc should make on December 31, 20m to record the first annual lease payment of $3,398. (Hint Based on your answer to part b, determine the appropriate amounts for interest and principal) Indicate the financial statement effect d. What expenses pnclude amounts) should be recognized for this lease on the income statement for the year ended December 2 20197 The accounting for an asset acquired under a capital lease Complete this question by entering your answers in the tabs below, Kurd 62 Requred C1 C2 Recond the journal entry that Carey Inc. should make on December 21, 2019, to record the first annual lease payment of $3,3 Based on your answer to part b, determine appropriate amounts for interest and principal) (If no entry is required for Dansaction/event, select "No journal entry repres the first account field. Do not round intermediate salculations Round you answers to the nearest whole dellar amount.) Journal entry worksheet < Record the first annual lease payment on capital lease Event Delit Crea inces Un January 1, 2019, Carey Inc. entered into a noncancelable lease agreement, agreeing to pay $3,398 at the end of each year for 4 years to acquire a new computer system having a market value of $9.901 The expected useful life of the computer system is also 4 years, and the computer will be depreciated on a straight-ane basis with no salvage value. The interest rate used by the lessor to determine the annual payments was 14% Under the terms of the lease, Carey has an option to purchase the computer for $1 on January 1, 2023 See Table 6-5 (Use the appropriate factor by clicking on the Table link.) Required: a. Should Carey Inc. account for this lease as a financing lease or an operating lease? b. Prepare the horizontal model and record the journal entry that Carey inc. should make on January 1, 2019 (Hint First determine the present value of future lease payments) c. Prepare the horizontal model and record the journal entry that Carey Inc. should make on December 31, 2019, to record the first annual lease payment of $3,398. (Hint Based on your answer to part b, determine the appropriate amounts for interest and principal) Indicate the financial statement effect d. What expenses (include amounts) should be recognized for this lease on the income statement for the year ended December 31, 20197 e. The accounting for an asset acquired under a capital lease Complete this question by entering your answers in the tabs below. Required A Required B1 Required 82 Required C1 Required C2 Required D Required E What expenses (include amounts) should be recognized for this lease on the income statement for the year ended December 31, 20197 (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Income statement (Partial) Depreciation expense On January 1, 2010, Carey Inc. entered into a noncancelable lease agreement, agreeing to pay $3.398 at the end of each year for 4 years to acquire a new computer system having a market value of $9901 The expected useful ate of the computer system is also 4 years, and the computer will be depreciated on a straight-line basis with no savage value The interest rate used by the lessor to determine the annual payments was 14% Under the terms of the lease, Carey has an option to purchase the computer for $1 on January 1, 2023 See Table 6.5 (Use the appropriate factor by clicking on the Table link) Required: a. Should Carey Inc account for this lease as a financing lease or an operating ease? b. Prepare the horizontal model and record the journal entry that Carey Inc. should make on January 1, 2019 (Het Fest determine the present value of future lease payments) c. Prepare the horizontal model and record the journal entry that Carey inc should make on December 31, 2019, 10 record their annual lease payment of $3.398. (Hint Based on your answer to part b, determine the appropriate amounts for interest and principal) Indicate the financial statement effect d. What expenses (include amounts) should be recognized for this lease on the income statement for the year ended December 31, 2019? e. The accounting for an asset acquired under a capital lease Complete this question by entering your answers in the tabs below. Required A Required D Required C Required C Retured D Regured t The accounting for an asset acquired under a capital lease on't really any different than the accounting for an asset that was purchased with money borrowed on a long-term an because the firm has aquired vetually at of the nights and benefits of ownersh nerdirely different than the accounting for an asset that was purchased with money bonpeed on ang teman because the Sm has not aqueed the rights and benefits of ownership