I have completed most of the work, I just need help with these ones Bonita Corporation (Bonita) manufactures equipment with an estimated economic life of 14 years On May 30, 2020, Bonita leases it to Gadget Corporation (Gadget) for a period of 10 years Assume both companies follow ASPE Details of the lease are as follows Equipment has a fair value and cost at the inception of the lease $231,581 Guaranteed residual value $34,000 Annual lease payment, due at beginning of each year $27,250 Lease contains no renewal options and the equipment reverts to Bonita at the end of the lease Gadgets incremental interest rate, as well as implicit rate is 6 Gadget uses straight line amortization for similar equipment that it owns Bonita has determined that collectibility of lease payments is reasonably predictable and that no additional costs will be incurred Prepare the journal entries for the lessee and lessor at May 30, 2020, and at December 31, 2020, which is the year end for both the lessee and lessor Prepare journal entries at May 30, 2021 for the lessee and lessor Assume reversing entries are not used Lessor ate Account Titles and Explanation Debit Credit , 2020 Lease Receivable 306500 Property Tax Expense 231581 Unearned Interest Income 74919 (To record inception of lease ) Cash 27250 Lease Receivable 27250 (To record collection of lease payment ) Lessee Date Account Titles and Explanation Debit Credit May 30, 2021 Obligations under Lease Interest Expense 27250 Cash 27250 (To record lease payment ) Lessor Date Account Titles and Explanation Debit Credit May 30, 2021 Unearned Interest Income 27250 Interest Income 27250 (To record interest ) Cash 27250 Lease Receivable 27250 (To record collection of lease payment )

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I have completed most of the work, I just need help with these ones. Bonita Corporation (Bonita) manufactures equipment with an estimated economic life of

I have completed most of the work, I just need help with these ones.

Bonita Corporation (Bonita) manufactures equipment with an estimated economic life of 14 years. On May 30, 2020, Bonita leases it to Gadget Corporation (Gadget) for a period of 10 years. Assume both companies follow ASPE. Details of the lease are as follows:

		Equipment has a fair value and cost at the inception of the lease: $231,581.
		Guaranteed residual value: $34,000.
		Annual lease payment, due at beginning of each year: $27,250.
		Lease contains no renewal options and the equipment reverts to Bonita at the end of the lease.
		Gadgets incremental interest rate, as well as implicit rate is 6%.
		Gadget uses straight-line amortization for similar equipment that it owns.
		Bonita has determined that collectibility of lease payments is reasonably predictable and that no additional costs will be incurred.

Prepare the journal entries for the lessee and lessor at May 30, 2020, and at December 31, 2020, which is the year end for both the lessee and lessor.

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Prepare journal entries at May 30, 2021 for the lessee and lessor. Assume reversing entries are not used

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Lessor: ate Account Titles and Explanation Debit Credit , 2020 Lease Receivable 306500 Property Tax Expense 231581 Unearned Interest Income 74919 (To record inception of lease.) Cash 27250 Lease Receivable 27250 (To record collection of lease payment.) Lessee: Date Account Titles and Explanation Debit Credit May 30, 2021 Obligations under Lease Interest Expense 27250 Cash 27250 (To record lease payment.) Lessor: Date Account Titles and Explanation Debit Credit May 30, 2021 Unearned Interest Income 27250 Interest Income 27250 (To record interest.) Cash 27250 Lease Receivable 27250 (To record collection of lease payment.)