Recording Operating Lease Entries$-$Lessee Recording Operating Lease Entries$-$Lessee

exercised. There are no uncertainties surrounding the lease payments to be made by Kregor. The implicit rate of the lease is $7\%,$ known by Kregor Construction

Required

a$.$ How would Kregor Construction classify the lease?

Lease Liability Schedule

Journal Entries

c$.$ Prepare a schedule of the right$-$of$-$use asset for the first two years of the 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 answer all parts of the question. Recording Operating Lease Entries$-$Lessee

exercised. There are no uncertainties surrounding the lease payments to be made by Kregor. The implicit rate of the lease is $7\%,$ known by Kregor Construction.

Required

a$.$ How would Kregor Construction classify the lease?

Lease Liability Schedule Right$-$of$-$Use Asset Schedule

d$.$ Prepare the entries for Kregor Construction on January $1$ and December $31$ for the first two years of the lease term, assuming its accounting year ends December $31.$

Note: Round your answers to the nearest whole dollar.

exercised. There are no uncertainties surrounding the lease payments to be made by Kregor. The implicit rate of the lease is $7\%,$ known by Kregor Construction.

Required

a$.$ How would Kregor Construction classify the lease?

Lease Liability Schedule

Right$-$of$-$Use Asset Schedule

Journal Entries

b$.$ Prepare a schedule of the lease liability for the first two years of the lease term.

Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule