Please watch my instruction that I put on the table for part B , complete the table, every spot that say answer an amount should enter here

On January 1 of Year 1, Ashe Company entered into a ve-year equipment lease (with no renewal options) requiring payments of $10,000 , with the rst payment due immediately. The lessors implicit interest rate, known to Ashe, is 6%. Ownership of the equipment remains with the lessor at expiration of the lease. There is no option to purchase the property at the end of the lease term and the equipment is expected to have no residual value. The equipment has an estimated economic life of ve years.

a. How would Ashe Company classify the lease? AnswerFinance leaseOperating lease b. Prepare a schedule of the lease liability for the 5-year lease term. Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Please watch my instruction that I out on the table for part B, Complete the table, every spot that say answer an amount should enter here

Complete the table please and thank you

DateLeaseInterestLease LiabilityLeasePaymenton LiabilityChangeLiabilityJan. 1, Year 1AnswerJan. 1, Year 1

10000

Answer

Answer

Answer

Jan. 1, Year 2

10000

Answer

Answer

Answer

Jan. 1, Year 3

10000

Answer

Answer

0Jan. 1, Year 4

10000

Answer

10000-10000Jan. 1, Year 5

10000

Answer

10000-20000Total$50000$$20000

c. Prepare the entries for Ashe on (1) January 1 to record commencement of the lease and the rst lease payment, and (2) December 31 to record the two year-end adjusting entries. Note: Round your answers to the nearest whole dollar. For Part C, it is only 2 answers for example; right of use asset debit and credit cash or whatever the name is. No extra steps like Right of use asset debit, liability debit and credit cash no, it's only 2 lines not 3 the third line is to put for example to record lease liability and right-use of asset.

Thank you in advance for the great work

DateAccount NameDr.Cr.

Jan. 1

CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling Expense

Answer

CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling Expense

Answer

To record lease liability and right-of-use asset.Jan. 1CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling Expense

Answer

CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling Expense

Answer

To record receipt of lease payment.Dec. 31CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling Expense

Answer

CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling Expense

Answer

To record interest.Dec. 31CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling Expense

Answer

CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling Expense

Answer

To record amortization