Prepare the journal entries relating to the leased asset and the lease liability for $204$ and $205$ for Wan. $($If no entry is required for On $2$ January $20$X$4.$ Yvan Ltd$,$ a public company, entered into a five$-$year equipment lease with Jeffery Leasing inc. The lease calls for

annual lease payments of $$165,000.$ payable at the beginning of each lease year. Yvan's $18$ R is $8\%,$ Yan does not know the lessor's

interest rate. The fair value of the equipment is $$690,000.$ Wvan depreciates equipment on a straight$-$line basis. taking a full year's

depreciation in the year of acquisition.

$($PV of $$1.$ PVA of $$1,$ and PVAD of $$1)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

Prepare the lease liability amortization schedule for Yvan

a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

Record the initial recognition of Right$-$of$-$use asset the at the commencement

of lease.

Notes Enter debits before credits.