On July 1, 2020, Shroff Company leased a warehouse building under a 10-year lease agreement. The lease requires quarterly lease payments of $4,500. The first lease payment is due on September 30, 2020. The lease was reported as a finance lease using an 8% annual interest rate.

a. Prepare the journal entry to record the commencement of the lease on July 1, 2020.

b. Prepare the journal entries that would be necessary on September 30 and December 31, 2020.

c. Post the entries from parts a and b in their appropriate T-accounts.

d. Prepare a financial statement effects template to show the effects template to show the effects of the entries from parts a and b on the balance sheet and income statement. Note: Round answers to the nearest dollar. Use rounded answers for subsequent computations.

Need confirmation that these are right or wrong. This question has been posted on Chegg multiple times and every single solution has different values. Thank you!

Credit > 0 Debit 123,100 0 3,078 123,100 0 0 3,078 0 Date Description 7/1/20 Right-of-use lease asset - finance lease Finance lease liability 9/30/20 Amortization expense - finance lease Accumulated amortization - finance lease 9/30/20 Interest expense Finance lease liability Cash 12/31/20 Amortization expense - finance lease Accumulated amortization - finance lease 12/31/20 Interest expense Finance lease liability Cash 0 2,462 2,038 0 3,078 4,500 > 0 0 3,078 0 2,421 2,079 0 0 6,000 Cash 0 4,500 Finance Lease Liability 2,038 123,100 2,079 0 Accumulated Amortization 0 3,078 0 3,078 O O 0 6,000 Right-of-use Asset- Finance Lease 123,100 Interest Expense 2,462 0 Amortization Expense 3,078 0 3,078 0 2,421 0 0 Cash Asset Noncash Assets 123,100 Contributed Capitals 0 Earned Capital 0 0 0 Balance Sheet Contra Assets Liabilities 0 123,100 (3,078) 0 0 (2,462) (3,078) 0 0 (2,421) 0 Transactions 7/1: Finance lease commences. 9/30: Amortization on leased asset. 9/30: Made quarterly lease payment. 12/31: Amortization on leased asset. 12/31: Made quarterly lease payment. 0 (3,194.5) (2,556) Income Statement Net Revenues Expenses Income 0 0 0 0 0 0 3,078 (3,078) 0 2,038 (2,038) 0 3,078 (3,078) 0 2,079 (2,079) (4,500) 0 0 0 0 0 (3,194.5) (2,157) (4,500) 0 0