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ILHA A Player A Player X A Player XC Brief ExercX A Player Lecture slid X courses/36120/assignments/4318478?module_item_id=13627077 On January 1, 2020, Marigold Animation sold a

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ILHA A Player A Player X A Player XC Brief ExercX A Player Lecture slid X courses/36120/assignments/4318478?module_item_id=13627077 On January 1, 2020, Marigold Animation sold a truck to Peete Finance for $39,000 and immediately leased it back. The truck was carried on Marigold's books at $31,000. The term of the lease is 3 years, there is no bargain purchase option, and title does not transfer to Marigold at lease-end. The lease requir- three equal rental payments of $8,816 at the end of each year (first payment on January 1, 2021). The appropriate rate of interest is 7%, the truck has a useful life of 5 years, and the residual value at the end of the lease term is expected to be $14,000, none of which is guaranteed. Prepare Marigold's 2020 journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.) Click here to view factor tables. Date Debit Credit Account Titles and Explanation Cash 1/1/20 39.000 Trucks 31,000 8,000 Gain on Disposal of Plant Assets (To record sale of truck) Right-of-Use Asset 4 1/1/20 24755 Lease Liability 24755 (To record lease liability) 12/31/20 Lease Expense 8,816 Lease Liability 1,732 7,084 Right-of-Use Asset e Textbook and Media ILHA A Player A Player X A Player XC Brief ExercX A Player Lecture slid X courses/36120/assignments/4318478?module_item_id=13627077 On January 1, 2020, Marigold Animation sold a truck to Peete Finance for $39,000 and immediately leased it back. The truck was carried on Marigold's books at $31,000. The term of the lease is 3 years, there is no bargain purchase option, and title does not transfer to Marigold at lease-end. The lease requir- three equal rental payments of $8,816 at the end of each year (first payment on January 1, 2021). The appropriate rate of interest is 7%, the truck has a useful life of 5 years, and the residual value at the end of the lease term is expected to be $14,000, none of which is guaranteed. Prepare Marigold's 2020 journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.) Click here to view factor tables. Date Debit Credit Account Titles and Explanation Cash 1/1/20 39.000 Trucks 31,000 8,000 Gain on Disposal of Plant Assets (To record sale of truck) Right-of-Use Asset 4 1/1/20 24755 Lease Liability 24755 (To record lease liability) 12/31/20 Lease Expense 8,816 Lease Liability 1,732 7,084 Right-of-Use Asset e Textbook and Media

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