On January 1, 2018, Wetick Optometrists leased diagnostic equipment from Southern Corp. which had purchased the equipment at a cost of $1,473,530. The lease agreement specifies six annual payments of $320,000 beginning January 1, 2018, the beginning of the lease, and at each December 31 thereafter through 2022. The six-year lease term ending December 31, 2023 a year after the final payment), is equal to the estimated useful life of the equipment. The contract specifies that lease payments for each year will increase on the basis of the increase in the Consumer Price Index for the year just ended. Thus, the first payment will be $320,000, and the second and subsequent payments might be different. The CPI at the beginning of the lease is 128. Southern routinely acquires diagnostic equipment for lease to other firms. The interest rate in these financing arrangements is 12%. (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. Prepare the appropriate journal entries for Wetick to record the lease at its beginning. 2. Assuming the CPI is 132 at that time, prepare the appropriate journal entries related to the lease for Wetick at December 31, 2018. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entries for Wetick to record the lease at its beginning. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Required 1 Required 2 Prepare the appropriate journal entries for Wetick to record the lease at its beginning. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the beginning of the lease for Wetick Optometrists. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2018 Dacaanto Clearomto Vienalina Required 1 Required 2 Prepare the appropriate journal entries for Wetick to record the lease at its beginning. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the lease payment for Wetick Optometrists. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2018 Vi ralli Required 1 Required 2 Assuming the CPI is 132 at that time, prepare the appropriate journal entries related to the lease for Wetick at December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the lease and interest payment for Wetick Optometrists. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2018 Record entry Clear entry View general iourall Required 1 Required 2 Assuming the CPI is 132 at that time, prepare the appropriate journal entries related to the lease for Wetick at December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the amortization of right-to-use asset for Wetick Optometrists. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2018 Record entry Clear entry View general ioural
