(a) Evaluate the criteria for classification of the lease by the lessor, and describe the nature of the lease. In general, discuss how the lessee and lessor should account for the lease transaction. Prepare the journal entries for the lessee and lessor at January 1, 2019, and December 31, 2019 (the lessee's and lessor's year-end). (b) (c) Prepare a 10-year lease amortization schedule for the lessee, Goring Dairy.

Question
(a)
Evaluate the criteria for classification of the lease by the lessor, and describe the nature of
the lease. In general, discuss how the lessee and lessor should account for the lease
transaction.
Prepare the journal entries for the lessee and lessor at January 1, 2019, and December 31,
2019 (the lessee's and lessor's year-end).
(b)
(c)
Prepare a 10-year lease amortization schedule for the lessee, Goring Dairy.
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Transcribed Image Text

(a) Evaluate the criteria for classification of the lease by the lessor, and describe the nature of the lease. In general, discuss how the lessee and lessor should account for the lease transaction. Prepare the journal entries for the lessee and lessor at January 1, 2019, and December 31, 2019 (the lessee's and lessor's year-end). (b) (c) Prepare a 10-year lease amortization schedule for the lessee, Goring Dairy.

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