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Company A leased equipment from Company B on January 1, 2021....

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Accounting

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Company A leased equipment from Company B on January 1, 2021. Company B manufactured the equipment at a cost of $600,000. Appropriate adjusting entries are made quarterly. The Lease term is 6 years with quarterly rent payments of 32,000 with the first rent payment due March 31, 2021, and each subsequent quarter thereafter. The economic life of the asset is 6 years and the implicit interest rate is 8%. 1) Prepare the appropriate journal entries for Company A (the Lessee) to record this transaction at its beginning, January 1, 2021 and on March 31, 2021. 2) Prepare the appropriate journal entries Company B (the Lessor) to record this transaction at its beginning, January 1, 2021 and on March 31, 2021. Briefly label (lessee or lessor JES) and type out the journal entries described above. Round to the nearest whole number. For example type Journal Entries in the following manner (with dr denoting debits and er denoting credits....so I don't have to interpret your tabs or the lack there of): Dr. Depreciation Expense 432 Cr. Accumulated Depreciation 432

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