On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four year period ending December 31, 2027, at which time possession of the leased asset will revert back to Aqua The equipment cost Aqua $416,676 and has an expected economic life of five years Aqua and Maywood expect the residual value at December 31, 2027, to be $54,000 Negotiations led to Maywood guaranteeing a $76,000 residual value Equal payments under the lease are $108,000 and are due on December 31 of each year with the first payment being made on December 31, 2024 Maywood is aware that Aqua used a 6 interest rate when calculating lease payments Note Use tables, Excel, or a financial calculator (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required 1 2 Prepare the appropriate entries for Maywood on January 1, 2024 and December 31, 2024, related to the lease Note If no entry is required for a transaction event, select No journal entry required in the first account field Do not round intermediate calculations Round your final answers to the nearest whole dollar

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On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2027, at which time possession of

On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Aqua.

The equipment cost Aqua $416,676 and has an expected economic life of five years.
Aqua and Maywood expect the residual value at December 31, 2027, to be $54,000.
Negotiations led to Maywood guaranteeing a $76,000 residual value.
Equal payments under the lease are $108,000 and are due on December 31 of each year with the first payment being made on December 31, 2024.
Maywood is aware that Aqua used a 6% interest rate when calculating lease payments.

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Required:

1. & 2. Prepare the appropriate entries for Maywood on January 1, 2024 and December 31, 2024, related to the lease.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.