FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
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Transcribed Image Text:On January 1, 2024, Harlon Consulting entered into a three-year lease for new office space agreeing to lease payments of: $12,700 In
2024, $9,800 in 2025 and $6,900 in 2026. Payments are due on December 31 of each year with the first payment being made on
December 31, 2024. Harlon is aware that the lessor used a 6% Interest rate when calculating lease payments.
Required:
1-4. Prepare the appropriate entries for Harlon Consulting on January 1, 2024, December 31, 2024, 2025 and 2026 to record the
lease.
Note: Use tables, Excel, or a financial calculator. If no entry is required for a transaction/event, select "No Journal entry required" In
the first account field. Round your Intermediate and final answers to nearest whole dollar. (FV of $1, PV of $1, FVA of $1. PVA of $1,
FVAD of $1 and PVAD of $1)
No
1
2
3
4
5
6
7
Date
January 01, 2024 Right-of-use asset
Lease payable
December 31, 202 Interest expense
Lease payable
Cash
December 31, 203 Amortization expense
Right-of-use asset
December 31, 202 Interest expense
Right-of-use asset
Cash
Answer is not complete.
General Journal
December 31, 203 Amortization expense
Right-of-use asset
December 31, 202 Interest expense
Right-of-use asset
Cash
December 31, 202 Amortization expense
Right-of-use asset
33
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