= Homework: Week Three Question 3, BE18.7 (similar to) Part 5 of 6 HW Score: 42.28%, 9.3 of 22 points Points: 0.58 of 1 Save Moss Manufacturing Company leased a piece of nonspecialized machinery for use in its operations from Leaf Leasing on January 1. The 7-year lease requires lease payments of $3,500 due on January 1 of each year. The machinery is estimated to have a 7-year life, is depreciated on the straight-line method, and will have no residual value at the end of the lease term. The present value of the lease payments using 11.3% and the asset's fair value on the date the lease is signed both equal $18,180. Leaf paid fair value to acquire the equipment the day before lease commencement. The lessor's implicit rate of 11.3% is known to Moss. Collection of all lease payments is reasonably assured. Prepare Moss Manufacturing's journal entries at the commencement of the lease and at the end of the first year. Prepare the entry for the first annual lease payment made on January 1. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Lease Liability Cash January 1, Year 1 3,500 3,500 Record Moss' year-end interest accrual related to the lease on December 31. (Round amounts to the nearest whole dollar. Record debits first, then credits. Exclude explanations from any journal entries.) December 31, Year 1 Account Help me solve this Etext pages Get more help - Type here to search 3' Clear all Check answer 55F Partly sunny 4:14 PM 1/24/2022