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Assuming a capitalized value of terminal facilities at January $1,2023,$ of $$9,200,000,$ prepare journal entries for Sunland Trucking to record the following:

$1.$The signing of the lease

$2$ The cash payment to the lessor on January $1,2023$

Depreciation of the cost of the properties for $2023$ using the straight$-$line method

The accrual of interest expense at December $31,2023,$ and any other adjusting journal entries concerning the lease

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List of Accountstook possession of the leased properties and made a cash payment of $$1,028,250.$

Although the useful life of each terminal is $40$ years, the non$-$cancellable lease runs for $20$ years from January $1,2023,$ with a purchase option available on expiration of the lease.

$$21,850$ for insurance. The lease was negotiated to assure the lessor a $5\%$ rate of return.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.

$($a$)$

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Present value of first $10$ payments

Present value of last $10$ payments

Present value of bargain purchase option

Discounted present value of terminal facilities and related obligation

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List of Accounts