On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period...

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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 the leased asset will revert back to Aqua. The equipment cost Aqua $418,922 and has an expected economic life of five years. Aqua and Maywood expect the residual value at December 31, 2027, to be $56,000. Negotiations led to Maywood guaranteeing a $79,000 residual value. Equal payments under the lease are $112,000 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 7% 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. View transaction list Journal entry worksheet > 1 2 3 Record the beginning of the lease for Maywood Hydraulics. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2024 Right-of-use asset Lease payable Record entry Clear entry View general journal > 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 $418,922 and has an expected economic life of five years. Aqua and Maywood expect the residual value at December 31, 2027, to be $56,000. Negotiations led to Maywood guaranteeing a $79,000 residual value. Equal payments under the lease are $112,000 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 7% 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. View transaction list Journal entry worksheet > 1 2 3 Record the beginning of the lease for Maywood Hydraulics. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2024 Right-of-use asset Lease payable Record entry Clear entry View general journal >