Universal Leasing leases electronic equipment to a variety of businesses. The company's primary service is providing alternate financing by acquiring equipment and leasing it to customers under longterm leases. Universal earns Interest under these arrangements at a 11% annual rate. Universal purchased an electronic typesetting machine on December 31, 2017, for $100,000 and then leased it to Desktop, Inc., a local publisher. The six-year operating lease term commenced January 1, 2018, and the lease contract specified annual payments of $9,000 beginning December 31, 2018 and each December 31 through 2023. The machine's estimated useful life is 15 years with no estimated residual value. The publisher had the option to terminate the lease after four years. At the beginning of the lease, there was no reason to believe the lease would be terminated. Required: 1. Prepare the appropriate entries for Universal Leasing from the beginning of the lease through the end of 2018. 2. At the beginning of 2019, there was a significant Indication that Desktop's economic Incentive to terminate the lease had causing both companies to believe termination of the lease at the end of four years (three years remaining) Is "reasonably certain". Prepare any appropriate entries for Universal Leasing at January 1, 2019, to reflect the change in the lease term. 3. Prepare the appropriate entries pertaining to the lease for Universal Leasing at December 31, 2019 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the appropriate entries for Universal Leasing from the beginning of the lease through the end of 2018. (If no entry is required for a particular transaction, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the beginning of the lease for Universal. Note: Enter debits before credits. General Journal Debit Credit Date January 01. 2018 Record entry Clear entry View general journal Required 1 Required 2 Required 3 At the beginning of 2019, there was a significant indication that Desktop's economic incentive to terminate the lease had changed causing both companies to believe termination of the lease at the end of four years three years remaining) is "reasonably certain". Prepare any appropriate entries for Universal Leasing at January 1, 2019, to reflect the change in the lease term. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) Show less View transaction list Journal entry worksheet Record the lease revenue and interest receivable by Universal. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2019 Required 1 Required 2 Required 3 Prepare the appropriate entries pertaining to the lease for Universal Leasing at December 31, 2019. (If no entry is required for a particular transaction, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the lease revenue received by Universal. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2019 Cash Record entry Clear entry View general journal Universal Leasing leases electronic equipment to a variety of businesses. The company's primary service is providing alternate financing by acquiring equipment and leasing it to customers under longterm leases. Universal earns Interest under these arrangements at a 11% annual rate. Universal purchased an electronic typesetting machine on December 31, 2017, for $100,000 and then leased it to Desktop, Inc., a local publisher. The six-year operating lease term commenced January 1, 2018, and the lease contract specified annual payments of $9,000 beginning December 31, 2018 and each December 31 through 2023. The machine's estimated useful life is 15 years with no estimated residual value. The publisher had the option to terminate the lease after four years. At the beginning of the lease, there was no reason to believe the lease would be terminated. Required: 1. Prepare the appropriate entries for Universal Leasing from the beginning of the lease through the end of 2018. 2. At the beginning of 2019, there was a significant Indication that Desktop's economic Incentive to terminate the lease had causing both companies to believe termination of the lease at the end of four years (three years remaining) Is "reasonably certain". Prepare any appropriate entries for Universal Leasing at January 1, 2019, to reflect the change in the lease term. 3. Prepare the appropriate entries pertaining to the lease for Universal Leasing at December 31, 2019 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the appropriate entries for Universal Leasing from the beginning of the lease through the end of 2018. (If no entry is required for a particular transaction, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the beginning of the lease for Universal. Note: Enter debits before credits. General Journal Debit Credit Date January 01. 2018 Record entry Clear entry View general journal Required 1 Required 2 Required 3 At the beginning of 2019, there was a significant indication that Desktop's economic incentive to terminate the lease had changed causing both companies to believe termination of the lease at the end of four years three years remaining) is "reasonably certain". Prepare any appropriate entries for Universal Leasing at January 1, 2019, to reflect the change in the lease term. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) Show less View transaction list Journal entry worksheet Record the lease revenue and interest receivable by Universal. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2019 Required 1 Required 2 Required 3 Prepare the appropriate entries pertaining to the lease for Universal Leasing at December 31, 2019. (If no entry is required for a particular transaction, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the lease revenue received by Universal. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2019 Cash Record entry Clear entry View general journal