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Eastern Edison Company leased equipment from Hi-Tech Leasing on January 1,2022. Lease...

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Accounting

Eastern Edison Company leased equipment from Hi-Tech Leasing on January 1,2022.
Lease term 3 years
Annual payments $80,000 on January 1 each year
Life of asset 3 years
Implicit interest rate 8%
PV, annuity due, 3 periods, 8%2.78326
PV, ordinary annuity, 3 periods, 8%2.57710
Hi-Tech's cost of the equipment $222,661
There is no expected residual value.
Assume a December 31 year-end. Round your answers to the nearest whole dollar amounts.
a. Show the appropriate journal entries for 1-1-22 for Hi Tech Leasing
b. Show the appropriate journal entry for 12-31-22 for Hi Tech Leasing
c. For Hi Tech Leasing's 2022 Statement of Cash Flow, what would be any cash flows shown on the face of the statement associated with the lease and their classification as operating, investing, or financing?
d. What if Hi Tech manufactured the equipment at a cost of $175,000 then was leasing to Eastern Edison using all the terms above. Show the appropriate journal entries for 1-1-22 in this what if scenario.

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