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Rhone-Metro Industries manufactures equipment that is sold or leased on December 31, 2021, Rhone-Metro leased equipment to Western Soya Co. for a noncancelable stated lease

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Rhone-Metro Industries manufactures equipment that is sold or leased on December 31, 2021, Rhone-Metro leased equipment to Western Soya Co. for a noncancelable stated lease term of four years ending December 31, 2025, at which time possession of the leased asset will revert back to Rhone-Metro. The equipment cost $320,000 to manufacture and has an expected useful life of six years. Its normal sales price is $404,357. The expected residual value of $18,000 at December 31, 2025, is not guaranteed. Western Soya Co. Is reasonably certain to exercise a purchase option on December 30, 2024, at an option price of $8,000. Equal payments under the lease are $147,000 (including $4,000 annual maintenance costs) and are due on December 31 of each year. The first payment was made on December 31, 2021. Western Soya's incremental borrowing rate is 10%. Western Soya knows the Interest rate Implicit in the lease payments is 8%. Both companies use straight-line amortization Required 1 Required 2 Required 3 Required 3 Required 4 Required 4 Required 5 Required 5 Required 6 Required 6 Lessee Lessor Lessee Lessor Lessor Less Prepare the appropriate entries for Western Saya co on December 31, 2022 (the second rent payment and amortization), car no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round Intermediate calculations Round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 2 3 Record amortization expense in the books of lessee. Note: Enter debits before credits Date December 31, 2022 General Journal Debit Credit Required 1 Required 2 Required Required Reed 4 Required Required 5 Requr Required 6 Required Lessor Less Lessor Prepare the appropriate entries for Western Soy co on December 2022 (the second rent payment and amortization), C no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations Round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record maintenance expense in the books of lessee Note: Enter debits before credits Date December 31, 2022 General Journal Debit Credit Required 4 Required 5 Required 5 Required 6 Required 6 Lessor Lesse Lessor Lesson Required 1 Required 3 Required 3 Required Lesce Lessor Lessee Required 2 Prepare the appropriate entries for Western Saya Con December 31, 2022 (the second rent payment and amortization). (If no entry is required for a transaction/event, select "No journal entry required in the first account held. Do not round intermediate calculations Round your final answers to the nearest whole dollar amount.) View transaction fist Journal entry worksheet Record cash payment in the books of lessee. Note: Enter debits before credits Date December 31, 2022 General Journal Debit Credit Required i equired 2 Requires Required Retre Requirer Required Required sequedo Required Lesse Lese LESSON Prepare the appropriate entries for Khone-Metro on December 31, 2022 (the second rent payment and mortion) (fra trys required for a transaction/event, select "No journal entry required in the first account field. Hound your intermediate and til answers to nearest whole dollar) View transaction list Journal entry worksheet Record cash received in the books of les lessor Note: Enter debits before credite Data General Journal Dabit Credit December 31, 2022 4: Critical Thinking Option #1 Purchase opt. cer6 Help Required 3 Required Required 4 Required 4 Required 5 Required 5 Required 6 Required Required 1 Required 2 Lessee Lessor Lessed Lessor Lessor Lee Lessor Prepare the appropriate entries for Western Soya Co. on December 30, 2024, assuming the purchase option is exercised on that date. (f no entry is required for a transaction/event, select "No journal entry required in the nest account field. Round your intermediate and final answers to nearest whole dollar.) View transaction lat Journal entry worksheet 2 3 4 5 1 Record amortization expense in the books of lessee. Note: Enter debits before credits General Journal Dobit Credit Date December 31, 2024 Required 1 Required 2 Required 3 Required 3 Required 4 Required 4 Required 5 Required Required 6 Required 6 Lessee Lessor Lessee Lessor Lesse Lassor Lesse Lessor Prepare the appropriate entries for Western Soya Co. on December 30, 2024, assuming the purchase option is exercised on that date. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermediate and final answers to nearest whole dollar) View transaction let Journal entry worksheet

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