On January 1, 2024, Ghosh Industries leased a high-performance conveyer to Karrier Company for a four-year period endingDecember 31, 2027, at which time possession of the leased asset will revert back to GhoshThe equipment cost Ghosh $957,800 and has an expected useful life of five years.. Ghosh expects the residual value at December 31, 2027, will be $301,800..Negotiations led to the lessee guaranteeing a $341,800 residual valueEqual payments under the finance/sales-type lease are $201.800 and are due on December 31 of each year with the firstpayment being made on December 31, 2024• Karrier is aware that Ghosh used a 5% interest rate when calculating lease payments..Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1)Required:1. Prepare the appropriate entries for both Karrier and Ghosh on January 1, 2024, to record the lease2. Prepare all appropriate entries for both Karrier and Ghosh on December 31, 2024, related to the lease.Complete this question by entering your answers in the tabs below.Required 1Required 2Prepare the appropriate entries for both Karrier and Ghosh on January 1, 2024, to record the lease.Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your answers tonearest whole dollar.View transaction listNoView journal entry worksheetDateJanuary 01, 2024 Right of use assetGeneral JournalDebitCredit

A lease is a contractual agreement between two parties where the owner of the assets known as the…

1. Prepare the appropriate entries for both Karrier and Ghosh on January 1, 2024, to record the lease 2. Prepare all appropriate entries for both Karrier and Ghosh on December 31, 2024, related to the lease.

1. Prepare the appropriate entries for both Karrier and Ghosh on January 1, 2024, to record the lease 2. Prepare all appropriate entries for both Karrier and Ghosh on December 31, 2024, related to the lease.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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