On January 1, 2018, Allied Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31, 2018, at which time possession of the leased asset will revert back to Allied. The equipment cost Allied $956,000 and has an expected useful life of five years. Allied expects the residual value at December 31, 2018, will be $300,000. Negotiations led to the lessee guaranteeing a $340,000 residual value. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of S1 (Use appropriate factor(s) from the tables provided.) Equal payments under the finance/sales-type lease are $200,000 and are due on December 31 of each year with the first payment being made on December 31, 2018. Karrier is aware that Allied used a 5% interest rate when calculating lease payments. Required: 1. Prepare the appropriate entries for both Karrier and Allied on January 1, 2018, to record the lease. 2. Prepare all appropriate entries for both Karrier and Allied on December 31, 2018, related to the lease, Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate entries for both Karrier and Allied on January 1, 2018, to record the lease. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your answers to nearest whole dollar) No Date General Journal Debit Credit January 01, 2018 Right of use asset 742098 1 ME HUM Saved Check my work mode : This shows what is correct or incorrect for the work you have completed so far. le does not indicate complu 12 REMY W CIRCHY you GW US W. Required 1 Required 2 20 points Prepare all appropriate entries for both Karrier and Allied on December 31, 2018, related to the lease. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your answers to nearest whole dollar) No Debit Credit 1 Date General Journal December 31, 201 Interest expense Lease payable Cash 37 106 162 895 O 200,000 2 December 31, 201 Accumulated depreciation Right of use asset 185.525 185525 3 December 31, 201 Cash 200,000 Interest revenue Lease recevable 37,105 162,095