Table 6.4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (n) Periods 2% 2 % 3% 4% 5% 6% 94340 1.83339 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 4.71346 4.645834.57971 4.45182 4.329484.21236 5.60143 5.508135.417195.24214 5.075694.91732 6.47199 6.34939 6.23028 6.00205 5.786375.58238 7.32548 7.170147.01969 6.73274 6.46321 6.20979 8.16224 7.97087 7.78611 7.43533 7.107826.80169 8.98259 8.75206 8.53020 8.11090 7.721737.36009 9.78685 9.51421 9.25262 8.76048 8.306417.88687 10.57534 10.25776 9.95400 9.385078.86325 8.38384 11.34837 10.98319 10.63496 9.98565 9.393578.85268 12.10625 11.69091 11.29607 10.56312 9.898649.29498 12.84926 12.38138 11.9379411.11839 10.379669.71225 98039 .97561 97087 .96154 .95238 1.94156 1.92742 1.91347 1.88609 1.85941 4 13 14 15 Table 6.2 PRESENT VALUE OF1 (PRESENT VALUE OF A SINGLE SUM) 5% 94340 89000 83962 79209 74726 70496 .66506 62741 .59190 55839 .52679 49697 (n) Periods 3% 98039 .97561 .97087 .96154 .95238 96117 .95181 .94260 .92456 .90703 94232 .92860.91514 .88900 .86384 92385 .90595 .88849 .85480 .82270 90573 .88385 .86261 .82193 .78353 88797 .86230 .83748 .79031 .74622 87056 .84127 .81309 .75992 .71068 85349.82075 .78941 .73069 .67684 83676 .80073 .76642 .70259 .64461 .82035 .78120.74409 .67556 .61391 80426 .76214 .72242 .64958 .58468 .78849 .74356 .70138 .62460 .55684 2% 24% 4% 5% 10 12 5. PRESENT VALUE OF AN ANNUITY DUE OF 1 TABLE. Contains the amounts that must be deposited now at a specified rate of interest to permit withdrawals of 1 at the b periodic intervals for the specified number of periods (Table 6.5) (n) Periods 2% 1.00000 .00000 1.00000 1.00000 .00000 .00000 1.98039 .97561 1.97087 1.96154 1.95238 1.94340 2.94156 2.92742 2.91347 2.88609 2.85941 2.83339 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 5.71346 5.64583 5.57971 5.45182 5.329485.21236 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 7.47199 7.34939 7.23028 7.00205 6.786376.58238 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 9.162248.97087 8.78611 8.43533 8.10782 7.80169 9.98259 9.75206 9.53020 9.11090 8.721738.36009 10.78685 10.51421 10.25262 9.76048 9.30641 8.88687 11.57534 11.25776 10.95400 10.38507 9.863259.38384 2 % 3% 4% 5% 6% 4 10 12 13 Lease Liability 21983 Cash 21983 To record lease liability) 12/31/17 Lease Expense 21983 Lease Liability Right-of-Use Asset Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Exercise 21A-16 Your answer is partially correct. Try again. Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Vaughn Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years 2. The fair value of the asset at January 1, 2017, is $67,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $4,000, none of which is guaranteed 4. The agreement requires equal annual rental payments of $21,983 to the lessor, beginning on January 1, 2017 5. The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 496 and is unknown to the lessee 6. Vaughn uses the straight-line depreciation method for all equipment. Assume that the expected residual value at the end of the lease is $11,000, such that the payments are $19,826 Click here to view the factor table Prepare all of the journal entries for the lessee for 2017 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to O decimal places, e.g. 5,265. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1/1/17 Right-of-Use Asset 62858 Lease Liability 62858 (To record the lease)