15013262 1,952x... P21.4 (LO 2) (Lessee Entries, Lease with Monthly Payments) Shapiro Inc. began operations in 2021 as a computer softw service firm, with an accounting fiscal year ending August 31. Shapiro's primary product is a sophisticated online inventory-contra system; its customers pay a fixed fee plus a usage charge for using the system. Shapiro has leased a large, Alpha-3 computer system from the manufacturer. The loase calls for a monthly rental of $40,000 forth 144 months (12 years) of the lease term. The estimated useful life of the computer is 15 years. All rentals are payable on the first day of the month beginning August 1, 2022, the date the computer was installed and the lease agreement was signed. The lease is non-cancelable for its 12-year term, and it is secured only by the manufacturer's chattel lien on the Alpha-3 system This leased asset will be depreciated by the straight-line method. Borrowed funds for this type of transaction would cost Shapiro 6% per year (0.5% per month). Following is a schedule of the present value of an annuity due for selected periods discounted at 0.5% pe period when payments are made at the beginning of each period. Periods Present Value of an Annuity Due (months) Discounted at 0.5% per Period 1.000 1.995 2.985 102.497 144 102.987 Instructions Prepare all entries Shapiro should make in its accounting records during August 2022 relating to this lease. Give full explanations and show supporting computations for each entry. Remember, August 31, 2022, is the end of Shapiro's fiscal accounting period, and it will be preparing financial statements on that date. Do not prepare closing entries. 1 2 3 143