Deal Leasing leased equipment to Hand Company on January 1, 2018. The lease payments were calculated to provide the lessor a 8% return. Eight annual lease payments of $57,000 are due at the beginning of each year beginning January 1, 2018. The present value of an annuity due of $1 at 8 for Eight periods is 6.20637.

Required:

Consider this to be a finance lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.)

1. Record the lease on the Lessee's books on January 1st 2018

2.Record the cash payment Lessee's books on January 1st 2018

3.Record accrued interst Lessee's books on December 31 2018

4.Record Ammortization schedule Lessee's books on December 31 2018.

1. Record the lease on the Lessee's books on January 1st 2018

Dr Equipment 353,763.09

    Cr Lease payable - Equipment 353,763.09

the present value of the lease = $57,000 x 6.20637 = $353,763.09

2. Record the cash payment Lessee's books on January 1st 2018

Dr Lease payable - Equipment 57,000

    Cr Cash 57,000

*You can also record questions 1 and 2 in one single journal entry:

Dr Equipment 353,763.09

    Cr Cash 57,000

    Cr Lease payable - Equipment 296,763.09

3. Record accrued interest Lessee's books on December 31 2018

Dr Interest expense 4,560

    Cr Accrued interest payable 4,560

4. Record Amortization schedule Lessee's books on December 31 2018.

Year      Opening      Interest        Payment       Principal        Closing

             balance       accrued                             payment        balance

   1      353,763.09     4,560           57,000          57,000     296,763.09

a.