situation one and two

Situation One - List the criteria that must be met before a lease arrangement is accounted for - A. As a finance lease by the lessee - B. As a direct financing lease by the lessor - C. As operating lease -Davies Company is leasing a truck from Callahan Company-which is deemed a finance lease-and at the time of the initial transaction there is no estimated and no guaranteed residual value. The following is a lease amortization schedule for Davies Company: Davies Company Lease Amortization Schedule Prepare the journal entries Davies Company would make for: a. the initial recording of the lease by the lessee, b. the lease payment on 1/1/21, c. the interest expense for the year ended 12/31/21, d. the amortization of the truck (assuming straight-line method) for the year ended 12/31/21, e. the purchase of the truck by Davies on 1/1/24, for $10,000 with an estimated life of the truck being two additional years