On January 1, 2024, Lesco Leasing leased equipment to Quality Services under a finance/sales-type lease designed to earn Lesco a 10% rate of return for providing long-term financing. The lease agreement specified: Note: Use tables, Excel, or a financial calculator. (FV of \$1. PV of \$1. EVA of \$1, PVA of \$1. FVAD of \$1 and PVAD of \$1) a. Ten annual payments of $63,000 beginning January 1,2024 , the beginning of the lease and each December 31 thereafter through 2032. b. The estimated useful ife of the leased equipment is 10 years with no residual value. Its cost to Lesco was $385,264. c. The lease qualifies as a finance lease/sales-type lease. d. A 10-year service agreement with Quality Maintenance Company was negotiated to provide maintenance of the equipment as required. Payments of $6,000 per year are specified, beginning January 1, 2024. Lesco was to pay this cost as incurred, but lease payments reflect this expenditure. Also included in the $63,000 payments is an insurance premium of $5,000 providing coverage for the equipment Required: 1. Prepare the appropriate entries for both the lessee and lessor related to the lease on January 1, 2024 2. Prepare the appropriate entries for both the lessee and lessor related to the lease on December 31,2024. Complete this question by entering your answers in the tabs below. Prepare the appropriate entries for both the lessee and lessor related to the lease on January 1, 2024. Note: If no entry is required for a transaction/event, select 'No journal entry required' in the first account field, Round your intermediate and final answers to nearest whole dollar. Complete this question by entering your answers in the tabs below. Prepare the appropriate entries for both the lessee and lessor related to the lease on January 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar. 1 Record the beginning of the lease for Quality Services. 2 Record the lease and maintenance payment made by Quality. 3. Record the beginning of the lease for Lesco. 4 Record the lease and maintenance payment received by Lesco. Credit Complete this question by entering your answers in the tabs below. Prepare the appropriate entries for both the lessee and lessor related to the lease on December 31, 2024. Note: If no entry is required for a transaction/event, select "No joumal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar, 1 Record the lease and maintenance payment made by Quality. 2. Record amortization. 3 Record the lease and maintenance payment received by Lesco
