Wildhorse Inc. leased a new crane to Novak Construction under a 5-year, non-cancelable contract starting January 1, 2017. Terms of the lease require...
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help me with final prep please! Not a graded assignment I just don't have time to sit down and do before final and answers are not provided by instructor.

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Wildhorse Inc. leased a new crane to Novak Construction under a 5-year, non-cancelable contract starting January 1, 2017. Terms of the lease require payments of $45,500 each January 1, starting
January 1, 2017. The crane has an estimated life of 7 years, a fair value of $220,000, and a cost to Wildhorse of $220,000. The estimated fair value of the crane is expected to be $35,000 (unguaranteed)
at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Wildhorse and Novak adjust and close books annually at December
31. Collectibility of the lease payments is probable. Novak's incremental borrowing rate is 8%, and Wildhorse's implicit interest rate of 8% is known to Novak.

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PRESENT VALUE OF ANNUITY DUE
(annuity in advance -- beginning of period payments)
RATE PER PERIOD
0.50%
1.00%
1.50%
3.00%
4.00%
6.00%
8.00%
9.00%
10.00%
11.00%
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.99751
1.99256
1.98039
1.97561
1.97087
1.96154
1.95238
1.94340
1.92593
1.91743
1.90090
1.89286
2.99252
2.98510
2.97040
2.95588
2.94156
2.91347
2.83339
2.80802
2.78326
2.73554
2.69005
3.98506
3.95556
3.94099
3.91220
3.88388
3.77509
3.72325
3.67301
3.62432
3.57710
3.53129
3.48685
3.44371
3.40183
4.97512
4.95050
4.92611
4.90197
4.85438
4.76197
4.71710
4.62990
4.54595
4.46511
4.31213
4.23972
4.10245
4.03735
5.96272
5.92587
5.88944
5.85343
5.78264
5.71346
5.45182
5.32948
5.21236
5.10020
4.88965
4.79079
4.60478
6.89638
6.84560
6.79548
6.69719
6.60143
6.50813
6.41719
6.24214
6.07569
5.91732
5.76654
5.62288
5.48592
5.35526
5.23054
5.11141
7.93052
7.79464
7.72819
7.59821
7.47199
7.23028
7.00205
6.78637
6.58238
6.38929
6.20637
6.03295
5.86842
5.71220
5.56376
8.91074
8.65168
8.48593
8.32548
8.17014
8.01969
7.73274
7.46321
7.20979
6.97130
6.74664
6.53482
6.33493
6.14612
5.96764
10
9.88852
9.77906
9.67158
9.56602
9.36052
9.16224
8.97087
8.78611
8.43533
8.10782
7.80169
7.51523
7.24689
6.99525
6.75902
6.53705
6.32825
10.86386 10.73041
1 10.59958
9.75206
9.11090
8.72173
8.36009
8.02358
7.71008
7.14457
11.83677
11.67703 11.52067
9.76048
9.30641
8.88687
8.49867
8.13896
7.80519
7.49506
6.93770
13
12.80725 12.61893 12.43491 12.25508 11.90751 11.57534
11.25776 10.95400 10.38507
9.86325
9.38384
8.94269
8.53608
8.16073
7.81369
7.49236
7.19437
13.77532 13.55615 13.34235 13.13374
11.98318 11.63496 10.98565
10.39357
9.85268
8.90378
8.48690
8.10336
7.74987
7.42355
14.74096 14.48871 14.24302
14.00370 13.54338 13.10625 12.69091 1
12.29607 11.56312 10.89864
10.29498
9.74547
9.24424
8.78615
8.36669
7.98187
7.62817
16
15.70420 15.41662 15.13699
14.34323
13.84926
13.38138 12.93794 12.11839
11.37966
10.71225 10.10791
9.55948
9.06069
8.19087
16.66504 16.33993
16.02431
15.71787
15.13126 14.57771
14.05500 13.56110 12.65230
11.83777
11.10590 10.44665
9.85137
9.31256
8.82371
7.97399
18
17.62348
17.25863
16.90502
15.90765 15.29187
14.71220 14.16612 13.16567
12.27407 11.47726 10.76322
10.12164
9.54363
9.02155
8.54879
8.11963
18.57953 18.17277 17.77918 17.39827 16.67256 15.99203 15.35336 14.75351 13.65930 12.68959
11.82760 11.05909 10.37189
9.20141
8.70162
8.24967
19
20
19.53320 19.08236 18.64683 18.22601
17.42617 16.67846 15.97889 15.32380 14.13394 13.08532
12.15812 11.33560
10.60360
9.36492
8.83929
8.36578
21
20.48449 19.98742 19.50802 19.04555
18.16864 17.35143 16.58916 15.87747 14.59033
13.46221 12.46992 11.59401 10.81815 10.12855
9.51356
8.46944
21.43340 20.88798 20.36280
19.85698
17.18455 16.41502 15.02916 13.82115 12.76408 11.83553
11.01680 10.29224
9.64869
8.56200
23 22.37995 21.78406 21.21121 20.66038
19.62082 18.65805 17.76541 16.93692 15.45112 14.16300 13.04158 12.06124 11.20074 10.44243 9.77154
9.17574
8.64465
23.32414 22.67568 22.05331 21.45582 20.33086
19.29220 18.33211 17.44361 15.85684 14.48857
13.30338
12.27219 11.37106 10.58021
9.88322
9.26643
8.71843
24.26598
22.88915 22.24339
14.79864 13.55036
12.46933 11.52876 10.70661
9.98474
9.34814
8.78432
30 28.94004 27.93302
26.06579 24.37608 22.84438 21.45355
20.18845 17.98371
9.65011
9.02181
33.55611
1 32.19555 30.91278 29.70267 27.48173 25.49859
23.72379 22.13184 19.41120 17.19290
15.36814 13.85401 12.58693
9.15656
40 38.11491
36.35309 34.70529
33.16303
30.36458 27.90259 25.73034 23.80822 20.58448 18.01704 15.94907 14.26493 12.87858 11.72552 10.75696
9.93567
9.23303
47.06354 44.36350
41.87820 39.58808
35.52468 32.05208 29.07137 26.50166 22.34147 19.16872 16.70757 14.76680 13.21216 11.94823 10.90630 10.03624
9.30104

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Prepare all the entries related to the lease contract and leased asset for the year 2017 for the lessee and lessor, assuming Novak uses straight-line amortization for all similar leased assets, and Wildhorse
depreciates the asset on a straight-line basis with a salvage value of $13,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25125 and the final answer to 0 decimal places e.g. 58,972.) Date Account “ties and Explanation Debit Credlt Lessee’s Entries 1/1/17 (To record lease.) 1/1/17 (To record lease payment.) 12/31/17 (To record interest and amortization expense.)

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Lessor's Entries
1/1/17
(To record expenses.)
12/31/17
(To record depreciation.)
12/31/17
(To record lease revenue.)

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