Q1. On Jan 1, 2014 FTS Shoes, signed a 3-year lease agreement for new equipment. The lease required FTS to make annual payments of $45,000 commencing Jan 1, 2014. Interest rate 5%. (7 marks) a) Journalize the entries required by FTS for each year of lease. b) Show your calculations on the next page c) Provide the lease liability Ledger for FTS on the next page.

Q1. On Jan 1, 2014 signed a 3-year lease agreement for new equipment. The lease required to make annual payments of $45,000 commencing Jan 1, 2014. Interest rate 5%. (7 marks) a) Journalize the entries required by for each year of lease. b) Show your calculations on the next page c) Provide the lease liability Ledger for ss on the next page. Jan 1 2014 Dr. Cr. Dec 31 2014 Dr. Jan 1 2015 Dr. Tor. Dec 31 2015 Dr. Cr. Jan 1 2016 Dr. Cr. Dec 31 2016 Dr. TURN OVER AND SHOW YOUR CALCUATIONS AND THE LIABILITY LEDGER c) Complete the Lease Liability Ledger TRANSACTIONS LEASE LIABLITY Dr. TURN OVER AND ANSWER QUESTIONS TWO AND THREE