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Brief Exercise 21A-6 Kingbird Company leased equipment from Costner Company, beginning on December 31, 2016. The lease term is 5 years and requires equal rental payments of $76,741 at the beginning of each year of the lease, starting on the commencement date (December 31, 2016). The equipment has a fair value at the commencement date of the lease of $320,000, an estimated useful life of 5 years, and no estimated residual value. The appropriate interest rate is 10% Click here to view the factor table. Prepare Klingbird's 2016 and 2017 journal entries, assuming Kingbird depreciates similar equipment it owns on a straight line basis. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places, 0.5,275.) Account Titles and Explanation Credit Date 12/31/16 (To record lease ability) 12/31/16 (To record lease payment) 12/31/17 Debit Credit Date Account Titles and Explanation 12/31/16 (To record lease liability) 12/31/16 (To record lease payment) 12/31/17 (To record interest expense) 12/31/17 (To record amortization of the right-of-use asset) kuni?mode=help&exlinkobject= k 974118742976c06-fea-00048.itemid=nopolice 2 40 2.20804 _085063.26204 4.80102 7.03999 10.28572 8% 9% 10% 11% 12% 15% (1) Periods 1.08000 1.09000 1.10000 1.11000 1.12000 1.15000 1 1.166401.18810 1.21000 1.23210 1.25440 1.32250 1.25971 1.295031.33100 1.36763 1.40493 1.52088 1.36049 1.41158 1.46410 1.51807 1.57352 1.74901 1.46933 1.53862 1.61051 1.68506 1.76234 2.01136 5 1.58687 1.67710 1.77156 1.87041 1.97382231306 1.71382 1.82804 1.94872 2.07616 2.21068 266002 7 1.85093 1.99256 2.14359 2.30454 2.47596 3.05902 1.99900 2.171892.35795 2.55803 2.77308 3.51788 9 2.15892 2.367362.593742839423.10585 4,04556 10 2.33164 2.58043 2.85312 3.15176 3.47855 4.65239 1 1 2.51817 2.81267313843 349545 3.89598 5.35025 12 2.71962 3.06581 3.45227 3.88328 4.36349615279 13 2.93719 3.34173312750 4.31044 4.88711 0 7571 1+ 3.17217 3642484177254.78459 5473573.13706_ 15 342394 397031 4.59497531089 6.1303993576216 3.70002432763 50544758950968660410 7613617 Brief Exercise 21A-6 Kingbird Company leased equipment from Costner Company, beginning on December 31, 2016. The lease term is 5 years and requires equal rental payments of $76,741 at the beginning of each year of the lease, starting on the commencement date (December 31, 2016). The equipment has a fair value at the commencement date of the lease of $320,000, an estimated useful life of 5 years, and no estimated residual value. The appropriate interest rate is 10% Click here to view the factor table. Prepare Klingbird's 2016 and 2017 journal entries, assuming Kingbird depreciates similar equipment it owns on a straight line basis. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places, 0.5,275.) Account Titles and Explanation Credit Date 12/31/16 (To record lease ability) 12/31/16 (To record lease payment) 12/31/17 Debit Credit Date Account Titles and Explanation 12/31/16 (To record lease liability) 12/31/16 (To record lease payment) 12/31/17 (To record interest expense) 12/31/17 (To record amortization of the right-of-use asset) kuni?mode=help&exlinkobject= k 974118742976c06-fea-00048.itemid=nopolice 2 40 2.20804 _085063.26204 4.80102 7.03999 10.28572 8% 9% 10% 11% 12% 15% (1) Periods 1.08000 1.09000 1.10000 1.11000 1.12000 1.15000 1 1.166401.18810 1.21000 1.23210 1.25440 1.32250 1.25971 1.295031.33100 1.36763 1.40493 1.52088 1.36049 1.41158 1.46410 1.51807 1.57352 1.74901 1.46933 1.53862 1.61051 1.68506 1.76234 2.01136 5 1.58687 1.67710 1.77156 1.87041 1.97382231306 1.71382 1.82804 1.94872 2.07616 2.21068 266002 7 1.85093 1.99256 2.14359 2.30454 2.47596 3.05902 1.99900 2.171892.35795 2.55803 2.77308 3.51788 9 2.15892 2.367362.593742839423.10585 4,04556 10 2.33164 2.58043 2.85312 3.15176 3.47855 4.65239 1 1 2.51817 2.81267313843 349545 3.89598 5.35025 12 2.71962 3.06581 3.45227 3.88328 4.36349615279 13 2.93719 3.34173312750 4.31044 4.88711 0 7571 1+ 3.17217 3642484177254.78459 5473573.13706_ 15 342394 397031 4.59497531089 6.1303993576216 3.70002432763 50544758950968660410 7613617

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