Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Only need the Amortization Expense for entries 3 and 7! Please Help! On January 1, 2024, Harlon Consulting entered into a three-year lease for new
Only need the Amortization Expense for entries 3 and 7! Please Help!
On January 1, 2024, Harlon Consulting entered into a three-year lease for new office space agreeing to lease payments of: $9,700 in 2024,$7,800 in 2025 and $5,900 in 2026 . Payments are due on December 31 of each year with the first payment being made on December 31,2024 . Harlon is aware that the lessor used a 6% interest rate when calculating lease payments. Required: 1-4. Prepare the appropriate entries for Harlon Consulting on January 1, 2024, December 31, 2024, 2025 and 2026 to record the lease. \begin{tabular}{|c|c|c|c|c|c|} \hline No & Date & \multicolumn{2}{|c|}{ General Journal } & Debit & Credit \\ \hline \multirow[t]{2}{*}{1} & January 01,2024 & Right-of-use asset & & 21,047 & \\ \hline & & Lease payable & 0 & & 21,047 \\ \hline \multirow[t]{3}{*}{2} & December 31,202 & Interest expense & 0 & 1,263 & \\ \hline & & Lease payable & 0 & 8,437 & \\ \hline & & Cash & 0 & & 9,700 \\ \hline \multirow[t]{2}{*}{3} & December 31,202 & Amortization expense & 0 & 9,151 & \\ \hline & & Right-of-use asset & 0 & & 9,151 \\ \hline \multirow[t]{3}{*}{4} & December 31,202 & Interest expense & 0 & 757 & \\ \hline & & Lease payable & 0 & 7,043 & \\ \hline & & Cash & 0 & & 7,800 \\ \hline \multirow[t]{2}{*}{5} & December 31,202 & Amortization expense & 0 & 7,043 & \\ \hline & & Right-of-use asset & 0 & & 7,043 \\ \hline \multirow[t]{3}{*}{6} & December 31,202 & Interest expense & 0 & 334 & \\ \hline & & Lease payable & 0 & 5,566 & \\ \hline & & Cash & 0 & & 5,900 \\ \hline \multirow[t]{2}{*}{7} & December 31,202 & Amortization expense & 0 & 4,954 & \\ \hline & & Right-of-use asset & 0 & & 4,954 \\ \hline \end{tabular}Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started