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22. (26 points) On January 1, 2019 Bridgewater Corp. leased computer equipment to Bancroft, Inc. The lease is a 5 year noncancelable lease agreement. The

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22. (26 points) On January 1, 2019 Bridgewater Corp. leased computer equipment to Bancroft, Inc. The lease is a 5 year noncancelable lease agreement. The following information about the lease and the computer equipment is provided: 1) Equal annual payments that are due on December 31 each year provide Bridgewater Corp. with an 6% retum on net investment. 2) The fair value of the computer equipment is $180,000 which equals the cost to Bridgewater Corp. The equipment has an expected useful life of 6 years. 3) The computer equipment reverts back to Bridgewater Corp. at the end of the lease. 4) Collectability of the lease payments is reasonably predictable and there are no important uncertainties surrounding the amount of costs yet to be incurred by Bridgewater Corp. Instructions (a) What type of lease is this for Bridgewater Corp.? Discuss. (6) What type of lease is this for Bancroft, Inc.? Discuss. (c) Calculate the annual lease payment. (Round to the nearest dollar) (d) Prepare a lease amortization schedule for Roland Corp. (lessor) for the first three (3) years (2020-2022). (Round all amounts to nearest dollar) + Interest Decrease in Date Payment Balance Principle Beginning Balance 12/31/20 12/31/21 12/3122 of 5 (e) Prepare the all journal entrylles) on Roland's books that relate to the lease agreement for the following dates. Add additional row(s) in each space provided if you need them. 1. January 1, 2020 Debit Credit 2. December 31, 2020. Debit Credit 3. December 31, 2021. Debit Credit ) Prepare the journal entryCies) on Casey's books that relate to the lease agreement for the following dates. Add additional row(s) in each space provided if you need them 1. January 1, 2020 Debit Credit 2. December 31, 2020 Debe Crect 3015 582 words

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