the one to be answer is the first picture using the data given from the second picture

the first piture the one with excersie #2

letter a) thats all I need

LESSOR ACCOUNTING - PROBLEM 2 Using the same data of the previous exercise and assuming the following information, you will answer this exercise from the point of view of the lessor: Collectibility of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by XYZ. Additional information: 1. Asset's cost $1,500,000. 2. Asset's FMV - $2,800,000 Required: a. Prepare journal entries for the year 2019. LESSEE ACCOUNTING - PROBLEM 1 ABC Company (ABC), on January 1, 2019, enters into a 10-year noncancelable lease for equipment having an estimated useful life of 10 years. XYZ Corp.'s implicit interest rate is 8%. ABC uses the straight-line method to depreciate its assets. The lease contains the following provisions: 1. Rental payments of $200,000 at the beginning of each six-month period (SEMIANNUAL PAYMENTS). 2. A guarantee by ABC that XYZ Corp. (XYZ) will realize $100,000 from selling the asset (RESIDUAL VALUE) at the expiration of the lease. ABC believes that it is probable that the expected residual value will be greater than the guaranteed residual value. 3. The lease contains no renewal options. The equipment reverts to lessor at the termination of the lease. Required: a. Compute the present value test. b. Compute the present value of the lease payments to be recorded as a liability. c. Prepare an amortization schedule table for the liability through the year 2021. d. Prepare journal entries for the year 2019. 2,00.000 Rental payments P.V.A.F @ 4% for 20 Payments $ 14.13 PV of rental payments Add: PV of GRV $ 28,26,787.88 46,319.35 PV of Minimum Lease Payments $ 28,73.107.23 As question does not specify fair value at inception of Lease Assumption here made is PV of MLP covers atleast 90% of Fair value of asset Therefore given lease is a capital lease Present value of Lease payments to be recorded as Liability is 28,73,107.23 Date 01-Jan-19 01-Jul-19 01-Jan-20 01-Jul-20 01-Jan-21 01-Jul-21 Opening balance $ 28,73.107.23 $ 26,73.107.23 $ 25,80,031.52 $ 24.83.232.78 $ 23,82,562.09 $ 22,77,864.57 Interest Installment Principal repayment Closing balance 0 $ 2,00,000 $ 2,00,000 S 26,73,107.23 $ 1,06,924.29 $ 2,00,000 S 93,076 S 25,80.031.52 $1,03,201.26 $ 2,00,000 S 96,799 $ 24,83.232.78 $ 99,329.31 $ 2.00000 S 1.00.671 S 23.82.562.09 $ 95,302.48 $ 2,00,000 S 1,04.698 $ 22,77,864.57 $ 91,114.58 $ 2,00,000 S 1,08,885 $ 21,68,979.16 d) Journal entries 01-Jan-19 Leased asset A/c Debit Lease Liability A/c Credit $ $ 28,73,107 28,73,107 01-Jan-19 Lease Liability A/c Debit Cash A/c Credit $ $ 2,00,000 2,00,000 01-Jul-19 Finance charge Debit Lease Liability A/c Credit $ $ 1,06,924 1,06,924 01-Jul-19 Lease Liability A/c Debit Cash Alc Credit $ $ 2,00,000 2,00,000 Please like the solution if satisfied with the answer and if any query please mention it in comments..thanks