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poed Book On December 31, 2021. Yard Art Landscaping leased a delivery truck from Branch Motors. Branch paid $36,000 for the truck. Its retail value is $100.975 The lease agreement specified annual payments of $30,000 beginning December 31, 2021, the beginning of the lease, and at each December 31 through 2024 Branch Motors interest rate for determining payments was 10%. At the end of the four-year lease term (December 31, 2025) the truck was expected to be worth $10,000. The estimated useful life of the truck is five years with no salvage value. Both companies use straight-line amortization or depreciation Yard Art guaranteed a residual value of $6,000 Yard Art's incremental borrowing rate is 9% and is unaware of Branch's implicit rate A $3,000 per year maintenance agreement was arranged for the truck with an outside service firm. As an expedient. Branch Motors agreed to pay this fee. It is, however, reflected in the $30,000 lease payments (EV of $1. PV OLSI. FVA of $1. PVA Of $1. FVAD of S1 and PVAD O 50 (Use appropriate factor(s) from the tables provided.) Required: 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease liability 3. How should this lease be classified by Branch Motors (the lessor)? 4. Show how Branch Motors calculated the $30,000 annual lease payments. 5. Calculate the amount Branch Motors would record as sales revenue. 6. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2021 7. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Yard Art. 8. Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Branch Motors 9. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2022 10. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2024 (the final lease payment). 11. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2025 (the end of the lease term), assuming the truck is returned to the lessor and the actual residual value of the truck was $2,000 on that date. ferences Complete this question by entering your answers in the tabs below. Reg 1 to 3 and Reg 4 Red 6 Reg 7 Regs Rego Reg 10 Reg 11 Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermediate and final answers to nearest whole dollar) View transactions Journal entry worksheet 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease liability. 3. How should this lease be classified by Branch Motors (the lessor)? 4. Show how Branch Motors calculated the $30,000 annual lease payments. 5. Calculate the amount Branch Motors would record as sales revenue. 6. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2021. 7. Prepare an amortization schedule that describes the pattern of interest expense over the lease term 8. Prepare an amortization schedule that describes the pattern of interest revenue over the lease term f 9. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2022 10. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2024 (the fina 11. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2025 (the end the truck is returned to the lessor and the actual residual value of the truck was $2,000 on that date. Complete this question by entering your answers in the tabs below. Reg 1 to 3 and 5 Reg 4 Reg 6 Reg 1 Req8 Req9 Req 10 Reg 1 Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Yard Intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.) Lessee's Amortization Schedule December 31 Payments Effective Decrease in Outstanding Interest Balance Balance 2021 - 2022 2023 2024 $ 0 $ 0 3 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease liability. 3. How should this lease be classified by Branch Motors (the lessor)? 4. Show how Branch Motors calculated the $30,000 annual lease payments. 5. Calculate the amount Branch Motors would record as sales revenue. 6. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2021 7. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Yard 8. Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Branch 9. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2022 10. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2024 (the final lease pa 11. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2025 (the end of the lea the truck is returned to the lessor and the actual residual value of the truck was $2.000 on that date. nts Spoed eBook Complete this question by entering your answers in the tabs below. Print Reg 1 to 3 and 5 Req 4 Req6 Reg 7 Regs Req9 Reg 10 Reg 11 References Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Branch Motors. (Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.) December 31 Lessor's Amortization Schedule Payments Effective Decrease in Interest Balance Outstanding Balance 2021 2022 2023 2024 2025 $ 05 0 $ 0 poed Book On December 31, 2021. Yard Art Landscaping leased a delivery truck from Branch Motors. Branch paid $36,000 for the truck. Its retail value is $100.975 The lease agreement specified annual payments of $30,000 beginning December 31, 2021, the beginning of the lease, and at each December 31 through 2024 Branch Motors interest rate for determining payments was 10%. At the end of the four-year lease term (December 31, 2025) the truck was expected to be worth $10,000. The estimated useful life of the truck is five years with no salvage value. Both companies use straight-line amortization or depreciation Yard Art guaranteed a residual value of $6,000 Yard Art's incremental borrowing rate is 9% and is unaware of Branch's implicit rate A $3,000 per year maintenance agreement was arranged for the truck with an outside service firm. As an expedient. Branch Motors agreed to pay this fee. It is, however, reflected in the $30,000 lease payments (EV of $1. PV OLSI. FVA of $1. PVA Of $1. FVAD of S1 and PVAD O 50 (Use appropriate factor(s) from the tables provided.) Required: 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease liability 3. How should this lease be classified by Branch Motors (the lessor)? 4. Show how Branch Motors calculated the $30,000 annual lease payments. 5. Calculate the amount Branch Motors would record as sales revenue. 6. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2021 7. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Yard Art. 8. Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Branch Motors 9. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2022 10. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2024 (the final lease payment). 11. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2025 (the end of the lease term), assuming the truck is returned to the lessor and the actual residual value of the truck was $2,000 on that date. ferences Complete this question by entering your answers in the tabs below. Reg 1 to 3 and Reg 4 Red 6 Reg 7 Regs Rego Reg 10 Reg 11 Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermediate and final answers to nearest whole dollar) View transactions Journal entry worksheet 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease liability. 3. How should this lease be classified by Branch Motors (the lessor)? 4. Show how Branch Motors calculated the $30,000 annual lease payments. 5. Calculate the amount Branch Motors would record as sales revenue. 6. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2021. 7. Prepare an amortization schedule that describes the pattern of interest expense over the lease term 8. Prepare an amortization schedule that describes the pattern of interest revenue over the lease term f 9. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2022 10. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2024 (the fina 11. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2025 (the end the truck is returned to the lessor and the actual residual value of the truck was $2,000 on that date. Complete this question by entering your answers in the tabs below. Reg 1 to 3 and 5 Reg 4 Reg 6 Reg 1 Req8 Req9 Req 10 Reg 1 Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Yard Intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.) Lessee's Amortization Schedule December 31 Payments Effective Decrease in Outstanding Interest Balance Balance 2021 - 2022 2023 2024 $ 0 $ 0 3 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease liability. 3. How should this lease be classified by Branch Motors (the lessor)? 4. Show how Branch Motors calculated the $30,000 annual lease payments. 5. Calculate the amount Branch Motors would record as sales revenue. 6. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2021 7. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Yard 8. Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Branch 9. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2022 10. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2024 (the final lease pa 11. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2025 (the end of the lea the truck is returned to the lessor and the actual residual value of the truck was $2.000 on that date. nts Spoed eBook Complete this question by entering your answers in the tabs below. Print Reg 1 to 3 and 5 Req 4 Req6 Reg 7 Regs Req9 Reg 10 Reg 11 References Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Branch Motors. (Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.) December 31 Lessor's Amortization Schedule Payments Effective Decrease in Interest Balance Outstanding Balance 2021 2022 2023 2024 2025 $ 05 0 $ 0

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