On December 31, 2019, Windsor Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Windsor to make annual payments of $8,092 at the beginning of each year, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $4.900 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Windsor uses the straight-line method of depreciation for all of its plant assets. Windsor's incremental borrowing rate is 15%, and the lessor's implicit rate is unknown. Prepare all necessary journal entries for Windsor for this lease through December 31, 2020. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places eg. 5,275)

Question
On December 31, 2019, Windsor Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for
Windsor to make annual payments of $8,092 at the beginning of each year, starting December 31, 2019. The machine has an
estimated useful life of 6 years and a $4.900 unguaranteed residual value. The machine reverts back to the lessor at the end of the
lease term. Windsor uses the straight-line method of depreciation for all of its plant assets. Windsor's incremental borrowing rate
is 15%, and the lessor's implicit rate is unknown.
Prepare all necessary journal entries for Windsor for this lease through December 31, 2020. (Record journal entries in the order
presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round
answers to O decimal places eg. 5,275)
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Transcribed Image Text

On December 31, 2019, Windsor Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Windsor to make annual payments of $8,092 at the beginning of each year, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $4.900 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Windsor uses the straight-line method of depreciation for all of its plant assets. Windsor's incremental borrowing rate is 15%, and the lessor's implicit rate is unknown. Prepare all necessary journal entries for Windsor for this lease through December 31, 2020. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places eg. 5,275)

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