(Answered) The following relate to an operating lease agreementa the

Accounting

The following relate to an operating lease agreement:

a. The lease term is 3 years, beginning January 1, 2011.

b. The leased asset cost the lessor $800,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets.

c. Annual lease payments at the beginning of each year were $137,000.

d. Costs of negotiating and consummating the completed lease transaction incurred by the lessor were $2,400.

Required:

Prepare the appropriate entries for the lessor from the inception of the lease through the end of the lease term.

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