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E21-20 (Lo3,4) (Accounting for an Operating Lease) from E21-19. Use the information for Kaluzniak Corporation...

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Accounting

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E21-20 (Lo3,4) (Accounting for an Operating Lease) from E21-19. Use the information for Kaluzniak Corporation and Moeller, Inc. Instructions (a) Explain (and show calculations) how Kaluzniak arrived at the amount of the rental payments used in the lease agreement. (b) Prepare the entries for Kaluzniak for 2017. (c) How would Kaluzniak's accounting in part (a) change if it incurred legal fees of $700 to execute the lease documents and $500 in advertising expenses for the year in connection with the lease? E21-20 (Lo3,4) (Accounting for an Operating Lease) from E21-19. Use the information for Kaluzniak Corporation and Moeller, Inc. Instructions (a) Explain (and show calculations) how Kaluzniak arrived at the amount of the rental payments used in the lease agreement. (b) Prepare the entries for Kaluzniak for 2017. (c) How would Kaluzniak's accounting in part (a) change if it incurred legal fees of $700 to execute the lease documents and $500 in advertising expenses for the year in connection with the lease

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