Three different lease transactions are presented below for Carla Vista Enterprises. Assume that all lease transactions start on January 1, 2021. Carla Vista does not receive title to the properties, either during the lease term or at the end of it. The yearly rental for each of the leases is paid on January 1 starting on January 1, 2021. Carla Vista Enterprises prepares its financial statements using ASPE.

		Manufacturing Equipment			Vehicles		Office Equipment
Lease term		5 years			6 years		3 years
Estimated economic life		15 years			7 years		6 years
Yearly rental payment		$15,370			$15,348		$3,928
Fair market value of leased asset		$99,050			$89,150		$16,910
Present value of lease rental payments		$58,910			$69,023		$10,340

List of Accounts

• Accounts Payable
• Accumulated Depreciation
• Bonds Payable
• Cash
• Car Rental Expense
• Common Shares
• Current Portion of Mortgage Payable
• Current Portion of Notes Payable
• Current Portion of Lease Liability
• Depreciation Expense
• Equipment
• Equipment Rental Expense
• Lease Liability
• Gain on Bond Redemption
• Income Tax Payable
• Interest Expense
• Interest Payable
• Leased Asset - Equipment
• Leased Asset - Vehicles
• Loss on Bond Redemption
• Mortgage Note Payable
• No Entry
• Notes Payable
• Prepaid Rent
• Rent Expense
• Retained Earnings
• Right-of-Use Asset
• Unearned Revenue

How should the lease transaction for each of the above assets be recorded on January 1, 2021? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Jan. 1 15,370 cash 15,370 (To record payment for manufacturing equipment lease.) Jan. 1 3,928 cash 3.928 (To record payment for office equipment lease.) Jan. 1 69,023 Lease Liability 69,023 (To record lease asset and liability for vehicles.) Lease Liability Jan. 1 15,348 Cash 15,348 (To record payment for vehicles lease.)