Prepare the journal entries to record the lease by Hand

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Problem - Deal Leasing leased equipment to Hand Company on January 1, 2018. The lease payments were calculated to provide the lessor a 9% return. Eight annual lease payments of $70,000 are due at the beginning of each year beginning January 1, 2018. The present value of an annuity due of $1 at 9 for Eight periods is 6.03295.

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. Prepare the journal entries to record the lease by Hand (lessee) at January 1, 2018.

2. Prepare the journal entries to record the lease by Hand (lessee) at December 31, 2018, the end of the first reporting period?

Reference no: EM132462682

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