This is my individual work for week 8. (Tax accounting material and come from chapter 21 A of the book)

These are similar to what was in the book but with my own numbers. I feel pretty ok with the calculations but not sure on journal entries. Can you look at the 2 questions and help me?

The lease term is 4 years, with equal annual rental payments of $4,802 at the beginning of each year.

1.Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature.

2.The building has a fair value of $19,100, a book value to Crane of $12,100, and a useful life of 5 years.

3.At the end of the lease term, Crane and Walsh expect there to be an unguaranteed residual value of $3,025.

4.Crane wants to earn a return of 9% on the lease, and collectability of the payments is probable. This rate is known by Walsh.

Using the original facts of the lease, show the journal entries to be made by both Crane and Walsh in 2017.

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 $69,000.

3.The asset will revert to thelessorat 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 $22,676 to thelessor, beginning on January 1, 2017.

5.The lessee's incremental borrowing rate is 5%. Thelessor'simplicit rate is 4% and is unknown to the lessee.

6.Sunland uses the straight-line depreciation method for all equipment.

Assume that the expected residual value at the end of the lease is $8,000, such that the payments are $21,444.

Click here to view the factor table.

Prepareall of thejournal 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.