17 of 30 View Policies Show Attempt History Current Attempt in Progress < 3.29/5 Kingbird Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $421,000. The fair value of the asset at January 1, 2020, is $421,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $23,000, none of which is guaranteed. 4. The agreement requires equal annual rental payments, beginning on January 1, 2020. 5. Collectibility of the lease payments by Kingbird is probable. Click here to view factor tables. (a) Question 17 of 30 Annual Lease Payment Plus Interest on Lease Recovery of Lease URV Receivable Receivable 0 $ 87034 0 0 0 87034 87034 36736 3.29/5 Lease Receivable 421000 333966 50298 283668 87034 31204 55830 227838 87034 25062 61972 165866 87034 18245 68789 97077 87034 23000 10679 2278 76355 20722 20722 $ 499204 $ 124204 $ 421000 0 Question 17 of 30 3.29/5 E Prepare all of the journal entries for the lessor for 2020 and 2021 to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor's annual accounting period ends on December 31, and it does not use reversing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record the lease) (To record the receipt of lease payment) look and Media Debit Credit