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On January 1, 2021, Winn Heat Transfer leased office space under a three-year operating lease agreement. The arrangement specified three annual lease payments of $80,000 each, beginning December 31, 2021, and at each December 31 through 2023. The lessor, HVAC Leasing calculates lease payments based on an annual interest rate of 5%. Winn also paid a $100.000 advance payment at the beginning of the lease. With permission of the owner, Winn made structural modifications to the building before occupying the space at a cost of $180,000. The useful life of the building and the structural modifications were estimated to be 30 years with no residual value. (EV of 51. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $.1) (Use appropriate factor(s) from the tables provided.) Required: ery correct NO General Journal Cred 1 Date January 01, 2021 Right-of-use asset Lease payable Debit 317.800 ol 317.800 2 14 January 01, 2021 Lease payable Cash 100.000 100.000 3 10,893 December 31, 202 Interest expense Lease payable Cash 69. 107 80.000 4 December 31, 202 Amortization expense Right-of-use asset 33 333 33,333 5 December 31, 202 Depreciation expense 60,000 Accumulated depreciation - Teasehold improvement 60.000 6 December 31, 202 Interest expense S 7,438 Lease payable Cash 72,562 80.000 7 December 31, 202 Amortization expense 33,333 Right-of-use asset 105.953 3 8 December 31, 202 Depreciation expense S 60.000 Accumulated depreciation - leasehold improvement 60.000 9 3,809 December 31, 202 Interest expense Lease payable Cash 76,191 30 80,000 10 December 31, 202 Amortization expense 105,953 Right-of-use asset 76,191 11 December 31, 202 Depreciation expense 60,000 Accumulated depreciation - leasehold improvement S 60.000

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