need journal entries

2 On 1 January 20X2, Supergrocery Inc. sold its major distribution facility, with a 22-year remaining life, to a real estate investment trust (REIT) for $9,000,000 cash, its estimated fair value. The facility had an original cost of $10,400,000 and accumulated depreciation of $3,600,000 on the date of sale. 5 points Skipped Also on 1 January 20X2, Supergrocery signed a 20-year lease agreement with the REIT, leasing the property back. Annual payments, beginning on 31 December 20X2, are $875,000. Supergrocery has an incremental borrowing rate of 9%. The company uses straight- line depreciation and has a 31 December year-end. Supergrocery records a part-year's depreciation on buildings, based on the date of acquisition. There is an expected residual value at the end of the lease term of $50,000 but this amount is not guaranteed. Round to the nearest percentage. (Do not round intermediate calculations. Round final answers to the nearest whole dollar amount.) (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) eBook Required: 1. Give the 20x2 entries that Supergrocery would make to record the sale and the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Print View transaction list References X > 1 Record the lease for the major distribution facility under a sale-leaseback. ack. 2 Record the interest expense for the period ending December 31, 20x2. 3 Record the depreciation expense on leased distribution facility for the period ending December 31, 20x2. Debit Credit 4 Record the lease payment on 31st December 20x2. 2 2. Repeat requirement 1 assuming that Supergrocery has the option to repurchase the equipment ten years after the start of the lease for $7,500,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 5 points View transaction list Skipped X eBook 1 Record the gain or loss on sale and lease back. > 2 Record the commencement of lease Print RE References Credit Note : = journal entry has been entered Record entry Clear entry View general journal