On January 1, 2017, Seven Wonders Inc signed a five year noncancelable lease with Moss Company The lease calls for five payments of $277,409 44 to be made at the end of each year The leased asset has a fair value of $1,200,000 on January 1, 2017 Seven Wonders cannot renew the lease, there is no bargain purchase option, and ownership of the leased asset reverts to Moss at the lease end The leased asset has an expected useful life of six years, and Seven Wonders uses straight line depreciation for financial reporting purposes Its incremental borrowing rate is 12 Mosss implicit rate of return on the lease is unknown Seven Wonders uses a calendar year for financial reporting purposes Both companies use ASC 840 to account for leases Use tables (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided ) Required Prepare an amortization schedule for the lease liability Prepare the journal entry to record The lease as a capital lease on January 1, 2017 The lease payments on December 31, 2017 and 2018 The leased assets depreciation in 2017 and 2018 What is the total amount of expense reported on Seven Wonders 2017 income statement from the lease Complete this question by entering your answers in the tabs below Required 2Required 3 Required 4 Prepare an amortization schedule for the lease liability Round the amount of the initial lease liability at January 1, 2017, to the nearest dollar Round all amounts in the amortization table to the nearest cent (Round your intermediate calculations and final answers to 2 decimal places Input all values as positive amounts ) Amortization of Capital Lease Liability Seven Wonders Incorporated (In thousands) Reduction of Lease Obligation Date Interest Portion Cash Payment Lease Obligation 12 31 17 12 31 18 12 31 19 12 31 20 12 31 21 Required 2 Required 3 Journal entry worksheet 2 3 4 Prepare the entry to record the signing of the lease Note Enter debits before credits Date General Journal Debit Credit 01 01 2017 Record entry Clear entry View general journal

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On January 1, 2017, Seven Wonders Inc. signed a five-year noncancelable lease with Moss Company. The lease calls for five payments of $277,409.44 to be

On January 1, 2017, Seven Wonders Inc. signed a five-year noncancelable lease with Moss Company. The lease calls for five payments of $277,409.44 to be made at the end of each year. The leased asset has a fair value of $1,200,000 on January 1, 2017. Seven Wonders cannot renew the lease, there is no bargain purchase option, and ownership of the leased asset reverts to Moss at the lease end. The leased asset has an expected useful life of six years, and Seven Wonders uses straight-line depreciation for financial reporting purposes. Its incremental borrowing rate is 12%. Mosss implicit rate of return on the lease is unknown. Seven Wonders uses a calendar year for financial reporting purposes. Both companies use ASC 840 to account for leases. Use tables (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.)

Required:

Prepare an amortization schedule for the lease liability.
Prepare the journal entry to record.

The lease as a capital lease on January 1, 2017.
The lease payments on December 31, 2017 and 2018.
The leased assets depreciation in 2017 and 2018.

What is the total amount of expense reported on Seven Wonders 2017 income statement from the lease?

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Complete this question by entering your answers in the tabs below. Required 2Required 3 Required 4 Prepare an amortization schedule for the lease liability. Round the amount of the initial lease liability at January 1, 2017, to the nearest dollar. Round all amounts in the amortization table to the nearest cent. (Round your intermediate calculations and final answers to 2 decimal places. Input all values as positive amounts.) Amortization of Capital Lease Liability Seven Wonders Incorporated (In thousands) Reduction of Lease Obligation Date Interest Portion Cash Payment Lease Obligation 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 Required 2 Required 3> Journal entry worksheet 2 3 4 Prepare the entry to record the signing of the lease. Note: Enter debits before credits. Date General Journal Debit Credit 01/01/2017 Record entry Clear entry View general journal