On January 1, 2024, Harlon Consulting entered into a three-year lease for new office space agreeing to lease payments of: $12,400 in 2024, $9,600 in 2025 and $6,800 in 2026. Payments are due on December 31 of each year with the first payment being made on December 31, 2024. Harlon is aware that the lessor used a 5% interest rate when calculating lease payments.

Required:

1-4. Prepare the appropriate entries for Harlon Consulting on January 1, 2024, December 31, 2024, 2025 and 2026 to record the lease.

Record for Harlon Consulting the beginning of the lease. Note: Enter debits before credits. Record the amortization expense for Harlon Consulting. Note: Enter debits before credits. Record the amortization expense for Harlon Consulting. Note: Enter debits before credits. Record the lease payment for Harlon Consulting. Note: Enter debits before credits. Record the lease payment for Harlon Consulting. Note: Enter debits before credits. Record the amortization expense for Harlon Consulting. Note: Enter debits before credits. Record the lease payment for Harlon Consulting. Note: Enter debits before credits