On January 1 of Year 2, Pym Technologies (Pym-Tech) leased new equipment to Parker Industries....
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Accounting
On January of Year Pym Technologies PymTech leased new equipment to Parker Industries. The equipment cost PymTech $ The lease agreement specified that Parker is to make five annual lease payments on January beginning January of Year to yield PymTech a return. The equipment has a fiveyear useful life with an unguaranteed residual value of $ In December of Year PymTech paid Parker $ as an incentive to sign the lease, and Parker paid legal fees of $ related to the execution of the lease. Ownership of the underlying asset remains with PymTech at the end of the lease term. Parker Industries is aware of the implicit interest rate used by PymTech. Parker's accounting period ends December
Required: Provide journal entries for the lessee and lessor on January and December of Year & Year
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