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Recording Finance Lease Journal Entries- Guaranteed Residual Value Smith, the lessee, signs an...

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Accounting

Recording Finance Lease Journal Entries- Guaranteed Residual Value
Smith, the lessee, signs an 8-year lease agreement for a floor of a building on December 31 that requires annual payments of $70,000, beginning immediately. The residual value oit $50,000 is guaranteed to the lessor at the end of the lease term. Smith estimates a residual value of $30,000 at the end of the lease term Smith is aware of the lessor's implicit rate of interest of 7%. Record Smith's journal entries on December 31, assuming that the lease is properly classified as a finance lease.
Note: Round your answers to the nearest whole dollar.
\table[[Date,Account Name,,,Dr.,Cr.],[Dec.31,Right-of-Use Asset,,,458,890vv,0vv
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