Lahirl Leasing purchased a single-engine plane for $440,000 and leased it to Red Baron Flying Club for Its falr value of $742,586 on January 1,2024. Note: Use tables, Excel, or a financlal calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and Terms of the lease agreement and related facts were a. Eight annual payments of $130,000 beginning January 1, 2024, the beginning of the lease, and on each December 31 through 2030. Red Baron knows that Lahirl Leasing's Implicit Interest rate was 11%. The estimated useful life of the plane Is elght years. Payments were calculated as follows: *Present value of an annulty due of $1:n=8,l=11% b. Red Baron's Incremental borrowing rate is 12%. c. Incremental costs of consummating the completed lease transaction Incurred by Lahirl Leasing were $20,309. Requlred: 1. How should this lease be classified (a) by Lahirl Leasing (the lessor) and (b) by Red Baron (the lessee)? 2. Prepare the approprlate entrles for both Red Baron Flying Club and Lahirl Leasing on January 1,2024. 3. Prepare an amortization schedule that describes the pattern of Interest expense over the lease term for Red Baron FlyIng Club. 4. Prepare the approprlate entrles for both Red Baron and Lahirl Leasing on December 31,2024 (the second lease payment). Both companles use straight-Ine depreciation or amortization. 5. Prepare the approprlate entrles for both Red Baron and Lahrl Leasing on December 31,2030 (the final lease payment). Complete this question by entering your answers in the tabs below. How should this lease be classified (a) by Lahiri Leasing (the lessor) and (b) by Red Baron (the lessee)? Note: Round your intermediate and final answers to nearest whole dollar. Prepare the appropriate entries for both Red Baron Flying Club and Lahiri Leasing on January 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. Journal entry worksheet 5 Record the beginning of the lease for Red Baron Flying Club. Note: Enter debits before credits. Journal entry worksheet 5 Record the lease payment for Red Baron Flying Club. Note: Enter debits before credits. Journal entry worksheet Record the beginning of the lease for Lahiri Leasing. Note: Enter debits before credits. Journal entry worksheet 1 Record the initial direct costs for Lahiri Leasing. Note: Enter debits before credits. Journal entry worksheet 1 Record cash received on lease by Lahiri Leasing. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Red Baron Flying Club. Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values. Prepare the appropriate entries for both Red Baron and Lahiri Leasing on December 31, 2024 (the second lease payment). Both companies use straight-line depreciation or amortization. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. Show less 4 Journal entry worksheet 3 Record the lease payment for Red Baron Flying Club. Note: Enter debits before credits. Journal entry worksheet Record the amortization expense for Red Baron Flying Club. Note: Enter debits before credits. Journal entry worksheet 1 Record cash received on lease by Lahiri Leasing. Note: Enter debits before credits. Prepare the appropriate entries for both Red Baron and Lahiri Leasing on December 31, 2030 (the final lease payment). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. Journal entry worksheet Record the lease payment for Red Baron Flying Club. Note: Enter debits before credits. Journal entry worksheet Record the amortization expense for Red Baron Flying Club. Note: Enter debits before credits. Journal entry worksheet Record cash received on lease by Lahiri Leasing. Note: Enter debits before credits. Lahirl Leasing purchased a single-engine plane for $440,000 and leased it to Red Baron Flying Club for Its falr value of $742,586 on January 1,2024. Note: Use tables, Excel, or a financlal calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and Terms of the lease agreement and related facts were a. Eight annual payments of $130,000 beginning January 1, 2024, the beginning of the lease, and on each December 31 through 2030. Red Baron knows that Lahirl Leasing's Implicit Interest rate was 11%. The estimated useful life of the plane Is elght years. Payments were calculated as follows: *Present value of an annulty due of $1:n=8,l=11% b. Red Baron's Incremental borrowing rate is 12%. c. Incremental costs of consummating the completed lease transaction Incurred by Lahirl Leasing were $20,309. Requlred: 1. How should this lease be classified (a) by Lahirl Leasing (the lessor) and (b) by Red Baron (the lessee)? 2. Prepare the approprlate entrles for both Red Baron Flying Club and Lahirl Leasing on January 1,2024. 3. Prepare an amortization schedule that describes the pattern of Interest expense over the lease term for Red Baron FlyIng Club. 4. Prepare the approprlate entrles for both Red Baron and Lahirl Leasing on December 31,2024 (the second lease payment). Both companles use straight-Ine depreciation or amortization. 5. Prepare the approprlate entrles for both Red Baron and Lahrl Leasing on December 31,2030 (the final lease payment). Complete this question by entering your answers in the tabs below. How should this lease be classified (a) by Lahiri Leasing (the lessor) and (b) by Red Baron (the lessee)? Note: Round your intermediate and final answers to nearest whole dollar. Prepare the appropriate entries for both Red Baron Flying Club and Lahiri Leasing on January 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. Journal entry worksheet 5 Record the beginning of the lease for Red Baron Flying Club. Note: Enter debits before credits. Journal entry worksheet 5 Record the lease payment for Red Baron Flying Club. Note: Enter debits before credits. Journal entry worksheet Record the beginning of the lease for Lahiri Leasing. Note: Enter debits before credits. Journal entry worksheet 1 Record the initial direct costs for Lahiri Leasing. Note: Enter debits before credits. Journal entry worksheet 1 Record cash received on lease by Lahiri Leasing. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Red Baron Flying Club. Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values. Prepare the appropriate entries for both Red Baron and Lahiri Leasing on December 31, 2024 (the second lease payment). Both companies use straight-line depreciation or amortization. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. Show less 4 Journal entry worksheet 3 Record the lease payment for Red Baron Flying Club. Note: Enter debits before credits. Journal entry worksheet Record the amortization expense for Red Baron Flying Club. Note: Enter debits before credits. Journal entry worksheet 1 Record cash received on lease by Lahiri Leasing. Note: Enter debits before credits. Prepare the appropriate entries for both Red Baron and Lahiri Leasing on December 31, 2030 (the final lease payment). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. Journal entry worksheet Record the lease payment for Red Baron Flying Club. Note: Enter debits before credits. Journal entry worksheet Record the amortization expense for Red Baron Flying Club. Note: Enter debits before credits. Journal entry worksheet Record cash received on lease by Lahiri Leasing. Note: Enter debits before credits