How to Record Lease Liability for Building Lease with Guaranteed

Your Company leases a building from another entity on January 1, 2020. 1.the lease term is 6 years 2.the implicit interest rate is 6% 3.the lease payments are $7,652 and made at the beginning of the lease year 4.the guaranteed residual value is $3,000 5.Lessee's expectation is that the residual value of the asset at the end of the lease term will be $2,000 What is the journal entry to record the lease liability? PV annuity due (6%,6) = 39,885+ PV of 1,000 = 705 Dr right of use asset 40,590Cr Lease liability 40,590 Your Company leases a building from another entity on January 1, 2020. the lease term is 9 years the implicit interest rate is 8% the lease payments are $10,005 and made at the beginning of the lease year the guaranteed residual value is $5,000 Lessee's expectation is that the residual value of the asset at the end of the lease term will be $2,000 1.What is the journal entry to record the lease liability? What is the journal entry to record the lease liability? PV annuity due (8%,9) = 67,500+ PV of 1,000 = 1,501 Dr right of use asset 69,001Cr Lease liability 69,001