Need help answering Part B. This is all that is given to me.
Testbank Problem 118 (Part Level Submission) Oriole Company, as lessee, enters into a lease agreement on July 1, 2021, for equipment. The following data are relevant to the lease agreement: 1 . The term of the noncancelable lease is 4 years, with no renewal option. Payments of $860,875 are due on July 1 of each year. 2 . The fair value of the equipment on July 1, 2021 is $3,040,000. The equipment has an economic life of 6 years with no salvage value. 3. Oriole depreciates similar machinery it owns on the sum-of-the-years'- digits basis. The lessee pays all executory costs. 5 . Oriole's incremental borrowing rate is 10% per year. The lessee is aware that the lessor used an implicit rate of 9% in computing the lease payments. Click here to view factor tables. (a) Your answer has been saved and sent for grading. See Gradebook for score details. Indicate the type of lease Oriole Company has entered into and what accounting treatment is applicable. Operating Lease Method Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS(b) Prepare the journal entries on Oriole's books that relate to the lease agreement for the following dates: (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 5,250.) 1. July 1, 2021. 2. December 31, 2021. 3. July 1, 2022. 4. December 31, 2022. Date Account Titles and Explanation Debit Credit (To record amortization.) (To record interest payment.) Click If you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS\fPresent Value of 1 (Present Value of a Single Sum) PVFn,i = (1+1)" 1 = (1+))n (n) Periods 2% 2A1/2% 3% 4% 5% 6% N . .98039 .97561 .97087 .96154 95238 94340 96117 .95181 94260 .92456 90703 .89000 00 VOD UT A W .94232 .92860 91514 .88900 .86384 .83962 92385 90595 88849 85480 82270 .79209 90573 88385 86261 .82193 .78353 .74726 .88797 86230 .83748 .79031 .74622 .70496 87056 84127 81309 .75992 .71068 66506 .85349 82075 78941 .73069 67684 62741Future Value of an Ordinary Annuity of 1 FVF-OAn,i = (1 + 1) 0-1 (n) Periods 2% 2A1/2% 3% 4% 5% 6% OOO VO UIA WN - 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2.02000 2.02500 2.03000 2.04000 2.05000 2.06000 3.06040 3.07563 3.09090 3.12160 3.15250 3.18360 4.12161 4.15252 4.18363 4.24646 4.31013 4.37462 5.20404 5.25633 5.30914 5.41632 5.52563 5.63709 6.30812 6.38774 6.46841 6.63298 6.80191 6.97532 7.43428 7.54743 7.66246 7.89829 8.14201 8.39384 8.58297 8.73612 8.89234 9.21423 9.54911 9.89747 9.75463 9.95452 10.15911 10.58280 11.02656 11.49132 10.94972 11.20338 11.46338 12.00611 12.57789 13.18079 11 12. 16872 12.48347 12.80780 13.48635 14.20679 14.97164Present Value of an Ordinary Annuity of 1 1- 1 PVF-OAni = (1 + 1)n (n) Periods 2% 2A1/2% 3% 4% 5% 6% CO0 NO UI A WON- 98039 97561 97087 96154 95238 94340 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 10 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 11 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 12 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 13 11.34837 10.98319 10.63496 9.98565 9.39357 8.85268Present Value of an Annuity Due of 1 1- 1 PVF-ADn,i = 1 + (1+1)0-1 (n) Periods 2% 2A1/2% 3% 4% 5% 6% OOO VO U A W N - 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.98039 1.97561 1.97087 1.96154 1.95238 1.94340 2.94156 2.92742 2.91347 2.88609 2.85941 2.83339 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 7.47199 7.34939 7.23028 7.00205 6.78637 6.58238 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 9.16224 8.97087 8.78611 8.43533 8.10782 7.80169 11 9.98259 9.75206 9.53020 9.11090 8.72173 8.36009 12 10.78685 10.51421 10.25262 9.76048 9.30641 8.88687 13 11.57534 11.25776 10.95400 10.38507 9.86325 9.38384 14 12.34837 11.98319 11.63496 10.98565 10.39357 9.85268
