Reporting Finance Lease, Guaranteed Residual-Lessee On the first day of its accounting year, January 1, 2020, Lessee In lessed a building at an annual payment of S65,539 to be paid at the beginning of each year for 10 years. The first payment was paid inediately. The building, which is new, cast $440,000 and has an estimated useful life af 12 years. The lessor's implicit rate is 6% and is known to Lessee Inc. The res dual value of the building of $12.000 was guaranteed by Lessee incw10 expects the residual value to acproximate $8,000. Lessee Inc incurred the following additional costs and received the following incentives pertaining to this lease: Paid legal fees of 5400 related to the execution of the lease. Pair a fixed lase payment of $55.9 plus a $1,400 recurring, payment to the Issar for hazard insurance on the building, Kreiveria locirantir of BAKIII in the Irasr. Hwadee In leerpus? Fine Arrartization Schedule Value of Right-of-Use Asset Journal Entries Value of Lesse Liability b. Prepare an amortization schedule of the lease liability. - Note: Round each amount in the schedule to the nearest whale deller. Use the rounded amount for later alculations in the schedule. Note: Include any nel rounding differerile lu Lease Liability in the interest Lucanul lui Jan. 1. 2030. LHAN Payment Interest on Liability Reduction of Lease Llability Lease Llability .99 50.939 30.939 Jan 1, 2012 an 1,2020 Jan 1, 2021 an 1, 2022 a1 1.2023 Jan 1, 2024 Jan 1, 2025 11, 2026 Jan 1, 2027 Jan 1, 2028 Jan 1, 2029 Jan 1, 2030 Tuul 36.939 56.939 56.922 58.939 58.939 626.329 * Reporting Finance Lease, Guaranteed Residual-Lessee On the first day of its accounting year, January 1, 2020, Lessee In lessed a building at an annual payment of S65,539 to be paid at the beginning of each year for 10 years. The first payment was paid inediately. The building, which is new, cast $440,000 and has an estimated useful life af 12 years. The lessor's implicit rate is 6% and is known to Lessee Inc. The res dual value of the building of $12.000 was guaranteed by Lessee incw10 expects the residual value to acproximate $8,000. Lessee Inc incurred the following additional costs and received the following incentives pertaining to this lease: Paid legal fees of 5400 related to the execution of the lease. Pair a fixed lase payment of $55.9 plus a $1,400 recurring, payment to the Issar for hazard insurance on the building, Kreiveria locirantir of BAKIII in the Irasr. Hwadee In leerpus? Fine Arrartization Schedule Value of Right-of-Use Asset Journal Entries Value of Lesse Liability b. Prepare an amortization schedule of the lease liability. - Note: Round each amount in the schedule to the nearest whale deller. Use the rounded amount for later alculations in the schedule. Note: Include any nel rounding differerile lu Lease Liability in the interest Lucanul lui Jan. 1. 2030. LHAN Payment Interest on Liability Reduction of Lease Llability Lease Llability .99 50.939 30.939 Jan 1, 2012 an 1,2020 Jan 1, 2021 an 1, 2022 a1 1.2023 Jan 1, 2024 Jan 1, 2025 11, 2026 Jan 1, 2027 Jan 1, 2028 Jan 1, 2029 Jan 1, 2030 Tuul 36.939 56.939 56.922 58.939 58.939 626.329 *
