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On December 31,2023, a day when the available interest rate was 9%, Valcent Products Inc....

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Accounting

On December 31,2023, a day when the available interest rate was 9%, Valcent Products Inc. leased equipment with an seven-year life. The contract called for an $8,900 annual lease payment at the end of each of the next five years, with the equipment becoming the property of the lessee at the end of that period. Use TABLE 14A.2.(Use appropriate factor(s) from the tables provided.)
Required:
1. Prepare entries to record. Valcent Products Inc. uses Accumulated depreciation account to account for depreciation expense. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar)
a. the leasing of the equipment,
b. depreciation expense for 2024 assuming straight-line and a zero residual value,
c. the December 31,2024, lease payment, including the recognition of interest expense on the lease liability on December 31,2024.
2. Prepare an amortization schedule for the lease liability. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.)

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