Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

On January 1, 2018, entered into a three-year lease for new office space agreeing to lease payments of $5,300 in 2018, $6,600 in 2019 and

On January 1, 2018, entered into a three-year lease for new office space agreeing to lease payments of $5,300 in 2018, $6,600 in 2019 and $7,900 in 2020. Payments are due on December 31 of each year with the first payment being made on December 31, 2018. Harlon is aware that the lessor used a 7% interest rate when calculating lease payments (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required: 1-4. Prepare the appropriate entries for Harlon Consulting on January 1, 2018, December 31, 2018, 2019 and 2020 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 intermediate and final answers to nearest whole dollar) transaction list view transaction Date

1. Record, for Harlon consulting, the beginning of the lease.

2. Record the lease payment and interest expense for Harlon Consulting

3. Record the amortization expense for Harlon Consulting.

4. Record the lease payment and interest expense for Harlon Consulting

5. Record the amortization expense for Harlon Consulting

6. Record the lease payment and interest expense for Harlon Consulting

7. Record the amortization expense for Harlon Consulting I journal entry has been entered

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions