Problem 15.5 Lessee; operating lease; advance payment; leasehold Improvement (LO15-4] On January 1, 2018. Winn Heat Transfer leased office space under a three year operating lease agreement. The arrangement specified three annual rent payments of $102,000 each, beginning December 31, 2018, and at each December 31 through 2020. The lessor, HVAC Leasing calculates lease payments based on an annual Interest rate of 8%. Winn also paid a $276.000 advance payment at the beginning of the lease. With permission of the owner. Winn made structural modifications to the building before occupying the space at a cost of $378,000. The useful life of the building and the structural modifications were estimated to be 30 years with no residual value. (FV of $1, PV of $1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the appropriate entries for Winn Heat Transfer from the beginning of the lease through the end of 2020. Winn's fiscal year is the calendar year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your answers to nearest whole dollars.) View transaction lat Journal entry worksheet 2 3 4 5 6 7 8 ..... 11 Record the beginning of the lease for Winn. Note: Enter debits before credits Date General Journal Debit Credit January 01, 2018 Record entry Clear entry View general Journal Journal entry worksheet Record the lease payment for Winn. Note: Enter debits before credits Journal entry worksheet Record the lease and interest payment for Winn. Note: Enter debits before credits Journal entry worksheet Record the amortization of right-to-use asset for Winn. Journal entry worksheet Record the amortization of right-to-use asset for Winn. Note: Enter dcbits before credits Journal entry worksheet Record the depreciation expense for Winn. Note: Enter debits before credits Journal entry worksheet Record the lease and interest payment for Winn. Note: Enter debits before credits Journal entry worksheet Record the amortization of right-to-use asset for Winn. Journal entry worksheet Record the amortization of right-to-use asset for Winn. Note: Enter dcbits before credits Journal entry worksheet Record the depreciation expense for Winn. Note: Enter debits before credits Journal entry worksheet
