Req 10 is the same required enteries senerios as Req 9 senerios

On December 31, 2024. Yard Art Landscaping leased a delivery truck from Branch Motors. - Branch paid $40,000 for the truck. Its retall value is $62,548. - The lease agreement specified annual payments of $16,000 beginning December 31,2024 , the beginning of the lease, and at each December 31 through 2027. - Branch Motors' Interest rate for determining payments was 10%. - At the end of the four-year lease term (December 31,2028 ) the truck was expected to be worth $15,000. - The estimated useful life of the truck is five years with no salvage value. - Both companies use straight-ine amortization or depreciation. - Yard Art guaranteed a residual value of $6,000. Yard Art's incremental borrowing rate is 10% and is unaware of Branch's implicit rate. A $1,000 per year maintenance agreement was arranged for the truck with an outside service firm. As an expedient, Branch Motors agreed to pay this fee. it is, however, reflected in the $16,000 lease payments. Note: Use tables, Excel, or a finencial calculator. (FV of \$1, PV of \$1. FVA of \$1. PVA of S1. PVAD of S1 and PVAD of \$1) Required: 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease llablity. 3. How should this lease be classified by Branch Motors (the lessor)? 4. Show how Branch Motors calculated the $16,000 annual lease payments. 5. Calculate the amount Branch Motors would record as sales revenue. 6. Prepare the appropnate entries for both Yard Art and Branch Motors on December 31, 2024. 7. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Yard Art. 8. Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Branch Motors. 9. Prepare the approprite entries for both Yard Att and Branch Motors on December 31, 2025. 10. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2027 (the final lease payment). 11. Prepare the appropnate entries for both Yard Art and Branch Motors on December 31,2028 (the end of the lease term). assuming the truck is returned to the lessor, and the actual residual value of the truck was $4,000 on that date. Complete this question by entering your answers in the tabs below. 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. How should this lease be classified by Yard Art Landscaping (the lessec)? 3. How should this lease be classified by Branch Motors (the lessor)? 5. Calculate the amount Bronch Motors would record as sales revenue. Note: Round your intermediate and final answers to nearest whole dollar. Complete this question by entering your answers in the tabs below. 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease liability. 3. How should this lease be classified by Branch Motors (the lessor)? 5. Calculate the amount Branch Motors would record as sales revenue. Note: Round your intermediate and final answers to nearest whole dollar. Show how Branch Motors calculated the $16,000 Note: Round your intermediate and final answers Journal entry worksheet Record the beginning of the lease for Yard Art. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits berore credits. Journal entry worksheet Record the beginning of the lease for Branch Motors. Note: Enter debits before credits. Journal entry worksheet Record cash received by Branch Motors. Notet Enter debits before credits. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Yard Art. Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values. Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Branch Motors. Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values. Journal entry worksheet Record the maintenance expense for Yard Art. Note: Enter debits before credits. Journal entry worksheet Record the lease payment for Yard Art. Note: Enter debits before credits. Journal entry worksheet 1 Record the cash received on lease by Branch Motors. Note: Enter debits before credits. Journal entry worksheet 4 Record the maintenance expense for Yard Art. Note; Enter debits before credits. Journal entry worksheet Record amortization of the right-of-use asset for Yard Art. Note: Enter debits before credits. Journal entry worksheet 1 Record the last cash receipt on lease and settlement of lease by Branch Motors. Note: Enter debits before credits. LMiliy a Prosedy vafue of 51 Fahle I f chare taloge uf 51 On December 31, 2024. Yard Art Landscaping leased a delivery truck from Branch Motors. - Branch paid $40,000 for the truck. Its retall value is $62,548. - The lease agreement specified annual payments of $16,000 beginning December 31,2024 , the beginning of the lease, and at each December 31 through 2027. - Branch Motors' Interest rate for determining payments was 10%. - At the end of the four-year lease term (December 31,2028 ) the truck was expected to be worth $15,000. - The estimated useful life of the truck is five years with no salvage value. - Both companies use straight-ine amortization or depreciation. - Yard Art guaranteed a residual value of $6,000. Yard Art's incremental borrowing rate is 10% and is unaware of Branch's implicit rate. A $1,000 per year maintenance agreement was arranged for the truck with an outside service firm. As an expedient, Branch Motors agreed to pay this fee. it is, however, reflected in the $16,000 lease payments. Note: Use tables, Excel, or a finencial calculator. (FV of \$1, PV of \$1. FVA of \$1. PVA of S1. PVAD of S1 and PVAD of \$1) Required: 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease llablity. 3. How should this lease be classified by Branch Motors (the lessor)? 4. Show how Branch Motors calculated the $16,000 annual lease payments. 5. Calculate the amount Branch Motors would record as sales revenue. 6. Prepare the appropnate entries for both Yard Art and Branch Motors on December 31, 2024. 7. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Yard Art. 8. Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Branch Motors. 9. Prepare the approprite entries for both Yard Att and Branch Motors on December 31, 2025. 10. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2027 (the final lease payment). 11. Prepare the appropnate entries for both Yard Art and Branch Motors on December 31,2028 (the end of the lease term). assuming the truck is returned to the lessor, and the actual residual value of the truck was $4,000 on that date. Complete this question by entering your answers in the tabs below. 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. How should this lease be classified by Yard Art Landscaping (the lessec)? 3. How should this lease be classified by Branch Motors (the lessor)? 5. Calculate the amount Bronch Motors would record as sales revenue. Note: Round your intermediate and final answers to nearest whole dollar. Complete this question by entering your answers in the tabs below. 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease liability. 3. How should this lease be classified by Branch Motors (the lessor)? 5. Calculate the amount Branch Motors would record as sales revenue. Note: Round your intermediate and final answers to nearest whole dollar. Show how Branch Motors calculated the $16,000 Note: Round your intermediate and final answers Journal entry worksheet Record the beginning of the lease for Yard Art. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits berore credits. Journal entry worksheet Record the beginning of the lease for Branch Motors. Note: Enter debits before credits. Journal entry worksheet Record cash received by Branch Motors. Notet Enter debits before credits. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Yard Art. Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values. Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Branch Motors. Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values. Journal entry worksheet Record the maintenance expense for Yard Art. Note: Enter debits before credits. Journal entry worksheet Record the lease payment for Yard Art. Note: Enter debits before credits. Journal entry worksheet 1 Record the cash received on lease by Branch Motors. Note: Enter debits before credits. Journal entry worksheet 4 Record the maintenance expense for Yard Art. Note; Enter debits before credits. Journal entry worksheet Record amortization of the right-of-use asset for Yard Art. Note: Enter debits before credits. Journal entry worksheet 1 Record the last cash receipt on lease and settlement of lease by Branch Motors. Note: Enter debits before credits. LMiliy a Prosedy vafue of 51 Fahle I f chare taloge uf 51