on January 1,2018

Prepare appropriate entries for High Time Tours from the beginning of the lease through March 31, 2018. Appropriate adjusting entries are made quarterly. Prepare an amortization schedule for the term of the lease. On January 1, 2018, Allied Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31, 2021, at which time possession of the leased asset will revert back to Allied. The equipment cost Allied exist956,000 and has an expected useful life of five years. Allied expects the residual value at December 31, 2022, will be exist300,000. Negotiations led to the lessee guaranteeing a exist340.000 residual value. Equal payments under the finance/sales-type lease are exist200.000 and are due on December 31 of each year with the first payment being made on December 31, 2018, Karrier is aware that Allied used a 5% interest rate when calculating lease payments. Prepare all appropriate entries for both Karrier and Allied on January 1, 2018, to related the lease. Prepare all appropriate entries for both Karrier and Allied on 31, 2018, related to the lease. On December 31, 2018, Yard Art Landscaping leased a delivery truck from Branch Motors. Branch paid exist40,000 for the truck. Its retail value is exist45, 114. The lease agreement specified annual payments of exist11,000 beginning December 31, 2018, the begin the lease, and at each December 31 through 2021. Branch Motors' interest rate for determining payment 10%. At the end of the four-year lease term (December 31, 2022) the truck was expected to be worth estimated useful life of the truck is five years with no salvage value. Both companies use straight-line among