Windsor Corporation (“Windsor”) manufactures equipment with an estimated economic life of 13 years. On May 30, 2020, Win

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Windsor Corporation (“Windsor”) manufactures equipment with
an estimated economic life of 13 years. On May 30,
2020, Windsor leases it to Gadget Corporation (“Gadget”)
for a period of 10 years. Assume both companies follow
ASPE. Details of the lease are as follows:
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY
DUE.
Prepare the journal entries for the lessee and lessor at May 30,
2020, and at December 31, 2020, which is the year end for both the
lessee and lessor. (Credit account titles are
automatically indented when the amount is entered. Do not
indent manually. Round factor values to 5 decimal places, e.g.
1.25124 and final answers to 0 decimal places, e.g. 5,275. If no
entry is required, select "No entry" for the account titles and
enter 0 for the amounts.)

Lessee:
Date
Account Titles and Explanation
Debit
Credit
(To record inception of lease.)
(To record lease payment.)
(To record interest.)
(To record depreciation expense.)
Lessor:
Date
Account Titles and Explanation
Debit
Credit
(To record inception of lease.)
(To record collection of lease payment.)
(To record interest.)
Prepare journal entries at May 30, 2021 for the lessee and
lessor. Assume reversing entries are not
used. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually.
Round factor values to 5 decimal places, e.g. 1.25124 and final
answers to 0 decimal places, e.g. 5,275. If no entry is required,
select "No entry" for the account titles and enter 0 for the
amounts.)

Lessee:
Date
Account Titles and Explanation
Debit
Credit
May 30, 2021
Lessor:
Date
Account Titles and Explanation
Debit
Credit
May 30, 2021
(To record interest.)
(To record collection of lease payment.)