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Recording Finance Lease, Unguaranteed Residual, Initial Direct Costs- Lessee c. Prepare the entries for Abel...

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Accounting

Recording Finance Lease, Unguaranteed Residual, Initial Direct Costs- Lessee c. Prepare the entries for Abel Company on January 1 and December 31 of the first year of the lease.
Note: Round your answers to the nearest whole dollar.
\table[[Date,Account Name,Dr.,Cr.],[\table[[Jan.1, Year 1]],,0,0],[,0,0],[,0,0],[To record asset and liability related to lease,,],[Jan.1, Year 1,,0,0],[,0,0],[To record lease payment,,],[Dec.31, Year 1,,0,0],[,0,0],[To record interest,,],[Dec.31, Year 1,,0,0],[,0,0],[To record amortization,,]]
unguaranteed residual value of $3,750 at the end of the lease.
Required
a. How would Abel Company classify the lease?
Lease Liability Schedule
Journal Entries
b. Prepare a schedule of the lease liability for the first two years of the lease term.
Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule.
Please answer all parts of the question.
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