thank you so much for the help. if you can plaes include caluculaitons. thank you so much

On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Aqua.

• The equipment cost Aqua $434,644 and has an expected economic life of five years.
• Aqua and Maywood expect the residual value at December 31, 2027, to be $70,000.
• Negotiations led to Maywood guaranteeing a $100,000 residual value.
• Equal payments under the lease are $140,000 and are due on December 31 of each year with the first payment being made on December 31, 2024.
• Maywood is aware that Aqua used a 5% interest rate when calculating lease payments.

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Required:

1. & 2. Prepare the appropriate entries for Maywood on January 1, 2024 and December 31, 2024, related to the lease.

Note: If 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.

On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2027, at which time possession of the leased asset will revert back to Aqua.

• The equipment cost Aqua $433,521 and has an expected economic life of five years.
• Aqua and Maywood expect the residual value at December 31, 2027, to be $69,000.
• Negotiations led to Maywood guaranteeing a $98,500 residual value.
• Equal payments under the lease are $138,000 and are due on December 31 of each year with the first payment being made on December 31, 2024.
• Maywood is aware that Aqua used a 7% interest rate when calculating lease payments.

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Required:

1. & 2. Prepare the appropriate entries for Maywood on January 1, 2024 and December 31, 2024, related to the lease.

Note: If 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.

Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessors implicit rate of return.

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

	Situation
	1	2	3	4
Lease term (years)	5	8	6	9
Lessor's rate of return	10%	11%	9%	12%
Fair value of lease asset	$ 67,000	$ 367,000	$ 92,000	$ 482,000
Lessor's cost of lease asset	$ 67,000	$ 367,000	$ 62,000	$ 482,000
Residual value:
Estimated fair value	0	$ 67,000	$ 24,000	$ 36,000
Guaranteed fair value	0	0	$ 24,000	$ 41,000

Required:

a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations.

Note: Round your answers to the nearest whole dollar amount.