A lease agreement between Hebert Corporation and Russell Corporation is described in E20 6 Instructions Provide the following for Hebert Corporation, the lessor, rounding all numbers to the nearest cent (a) Calculate the amount of gross investment at the inception of the lease (b) Calculate the amo...

Note as determined in Exercise 206 part b The lease agreement has a bargain purchase option The collectability of the lease payments is reasonably pre ...

A lease agreement between Hebert Corporation and Russell Corporation is described in E20-6. Instructions Provide the following

Question:

A lease agreement between Hebert and Russell is described in E20-6.
Instructions
Provide the following for Hebert the lessor, rounding all numbers to the nearest cent.
(a) Calculate the amount of gross investment at the inception of the lease.
(b) Calculate the amount of net investment at the inception of the lease.
(c) Prepare a lease amortization schedule using a computer spreadsheet for Hebert for the five-year lease term.
(d) Prepare the journal entries to reflect the signing of the lease and to record the receipts and income related to this lease for the years 2014, 2015, and 2016. The lessor's accounting period ends on December 31, and Hebert does not use reversing entries.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...