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Swifty Corporation leased equipment to Windsor, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $1,368 at the beginning of

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Swifty Corporation leased equipment to Windsor, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $1,368 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $9.800, a book value of $7.800, and Switty expects a residual value of 57,300 at the end of the lease term, Swifty set the lease payments with the intent of caring a 7% return, though Windsor is unaware of the rate implicit in the lease and has an incremental borrowing rate of %. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature Click here to view factor tables (For calculation purposes, use 5 decimal places as displayed in the factor table provided) Determine the nature of the lease to both Switty and Windsor The lease is aan lease to Windsor The lease is aan lease to Swifty Prepare all necessary journal entries for Windsor in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to decimal places, eg,5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the loase) (To record lease payment) How would the measurement of the lease liability and right-of-use asset be affected if, as a result of the lease contract, Windsor was also required to pay $600 in commissions, prepay $800 in addition to the first rental payment, and pay $200 of insurance each year (Round answers to decimal places, eg,5,275) Lease liability Right-of-use-assets eTextbook and Media List of Accounts Suppose, instead of a 3-year lease term, Windsor and Swifty agree to a one-year lease with a payment of 51,368 at the start of the lease. Prepare necessary journal entry for Windsor in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit 1/1/20

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