On January 1, 2021, Winn Heat Transfer leased office space under a three-year operating lease agreement. The arrangement specified three annual lease payments of $102,000 each, beginning December 31, 2021, and at each December 31 through 2023. The lessor, HVAC Leasing calculates lease payments based on an annual interest rate of 8%. Winn also paid a $282,000 advance payment at the beginning of the lease. With permission of the owner, Winn made structural modifications to the building before occupying the space at a cost of $384,000. The useful life of the building and the structural modifications were estimated to be 30 years with no residual value. (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: Prepare the appropriate entries for Winn Heat Transfer from the beginning of the lease through the end of 2023. Winns fiscal year is the calendar year.

• 1

  Record the beginning of the lease for Winn.

• 2

  Record the advance payment made at the beginning of the lease by Winn..

• 3

  Record the lease payment for Winn.

• 4

  Record the amortization the right-of-use asset for Winn.

• 5

  Record depreciation for Winn.

• 6

  Record the lease payment for Winn.

• 7

  Record the amortization of the right-of-use asset for Winn.

• 8

  Record depreciation for Winn.

• 9

  Record the lease payment for Winn.

• 10

  Record the amortization of the right-of-use asset for Winn.

• 11

  Record depreciation for Winn.