On January 1, 2021, Allied Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Allied. The equipment cost Allied $973,000 and has an expected useful life of five years. Allied expects the residual value at December 31, 2024, will be $317,000. Negotiations led to the lessee guaranteeing a $374,000 residual value. Equal payments under the finance/sales-type lease are $217,000 and are due on December 31 of each year with the first payment being made on December 31, 2021. Karrier is aware that Allied used a 9% 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. Prepare the appropriate entries for both Karrier and Allied on January 1, 2021, to record the lease. 2. Prepare all appropriate entries for both Karrier and Allied on December 31, 2021, related to the lease.

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I'm having trouble with these journal entries, but I believe they are correctly labeled. Thank you!

On January 1, 2021, Allied Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Allied. The equipment cost Allied $973,000 and has an expected useful life of five years. Allied expects the residual value at December 31, 2024, will be $317.000. Negotiations led to the lessee guaranteeing a $374,000 residual value. Equal payments under the finance/sales-type lease are $217,000 and are due on December 31 of each year with the first payment being made on December 31, 2021. Karrier is aware that Allied used a 9% 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. Prepare the appropriate entries for both Karrier and Allied on January 1, 2021, to record the lease. 2. Prepare all appropriate entries for both Karrier and Allied on December 31, 2021, related to the lease. 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, 2021, 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.) Journal entry worksheet 1 2 > Record the beginning of the lease for Karrier. Note: Enter debits before credits. Debit Credit Date January 01, 2021 General Journal Right-of-use asset Lease payable Record entry Clear entry View general Journal Journal entry worksheet Record the lease payment for Karrier. Debit Credit Note: Enter debits before credits. Date General Journal December 31, 2021 Interest expense Lease payable Cash Pacard onto Clearanto View.caporalioural Journal entry worksheet Record amortization of the right-of-use asset for Karrier. Note: Enter debits before credits. Date General Journal December 31, 2021 Amortization expense Right-of-use asset Debit Credit Record entry Clear entry View.general iournal Journal entry worksheet