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 $958,400 and has an expected useful life of five years. Allied expects the residual value at December 31, 2024, will be $302,400. Negotiations led to the lessee guaranteeing a $342,400 residual value. Equal payments under the finance/sales-type lease are $202,400 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 5% interest rate when calculating lease payments. (EV 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. Answer is complete but not entirely correct. 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. Bound your answers to nearest whole doflac) No Date: General Journal 1 January 01, 2021 Right-of-use asset Lease payable 2 January 01, 2021 Lease receivable Cost of goods sold Equipment Sales revenue 00 0000 Debit 750,608 Credit 750,608 917.123 958,400 958,400 917,123 Required 2 >