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Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Windsor Company. The following information relates to this agreement 1 2

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Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Windsor Company. The following information relates to this agreement 1 2 3. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. The fair value of the asset at January 1, 2020, is $76,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to haveli residual value of $7.000, none of which is guaranteed. The agreement requires equal annual rental payments of $24,177.00 to the lessor, beginning on January 1, 2020. The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 4% and is unknown to the lessee Windsor uses the straight-line depreciation method for all equipment 4. 5. 6. Click here to view factor tables. Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to 2 decimal places, eg. 5,265.25. Credit account titles are automaticaly Indented when the amount is entered. Do not Indent manually. Record journal entries in the order presented in the problem Date Account Titles and Explanation Debit Credit Right-of-Ust Kadet 6913192 1/1/20 Le ability 69131 (To record the lease) 1/1/20 Lability 24177 2012 Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to 2 decimal places, eg. 5,265.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit 11/20 Right-of-Use ASH 69131.97 Lease Liability 69131.97 (To record the lease) 11/20 Lee Libility 24177 2177 (To record lease liability) 19/31/20 Leave Expense 24177 Right of Use Aset Les by

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