Oriole Corporation enters into a 5-year lease of equipment on December 31, 2016, which requires 5 annual payments of $36,200 each, beginning December 31, 2016. In addition, Oriole guarantees the lessor a residual value of $20,300 at the end of the lease. However, Oriole believes it is probable that the expected residual value at the end of the lease term will be $10,300. The equipment has a useful life of 5 years. Prepare Orioles' December 31, 2016, journal entries assuming the implicit rate of the lease is 10% and this is known to Oriole. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places e.g. 5,275.)

Your answer is partially correct. Try again. Oriole Corporation enters into a 5-year lease of equipment on December 31, 2016, which requires 5 annual payments of $36,200 each, beginning December 31, 2016. In addition, Oriole guarantees the lessor a residual value of $20,300 at the end of the lease. However, Oriole believes it is probable that the expected residual value at the end of the lease term will be $10,300. The equipment has a useful life of 5 years. Prepare Orioles, December 31, 2016, journal entries assuming the implicit rate of the lease is 10% and this is known to Oriole. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places e.g. 5,275.) Click here to view the factor table. Date Account Titles and Explanation Debit Credit December 31, 2016 Right-of-Use Asset 150949.13 Lease Liability 150949.13 (To record the lease liability) December 31, 2016 Lease Liability 36,200 Cash 36,200 To record lease payment) Your answer is partially correct. Try again. Oriole Corporation enters into a 5-year lease of equipment on December 31, 2016, which requires 5 annual payments of $36,200 each, beginning December 31, 2016. In addition, Oriole guarantees the lessor a residual value of $20,300 at the end of the lease. However, Oriole believes it is probable that the expected residual value at the end of the lease term will be $10,300. The equipment has a useful life of 5 years. Prepare Orioles, December 31, 2016, journal entries assuming the implicit rate of the lease is 10% and this is known to Oriole. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places e.g. 5,275.) Click here to view the factor table. Date Account Titles and Explanation Debit Credit December 31, 2016 Right-of-Use Asset 150949.13 Lease Liability 150949.13 (To record the lease liability) December 31, 2016 Lease Liability 36,200 Cash 36,200 To record lease payment)