4 Exercise 15-34 (Algo) Lessor's initial direct costs; sales-type lease (LO15-2, 15-7] Terms of a lease agreement and related facts were as follows: 2.85 points a. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $4,690. b. The retail cash selling price of the leased asset was $536,000. Its useful life was three years with no residual value. c. The lease term was three years and the lessor paid $536,000 to acquire the asset. d. Annual lease payments at the beginning of each year were $194,265. e. Lessor's implicit rate when calculating annual rental payments was 9%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2021. 2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. 3. Record any entry(s) necessary at December 31, 2021, the fiscal year-end. (Prepare any entry(s) recorded by the lessor at December 31, 2021, its fiscal year-end.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 4 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 2.85 points Required 1 Required 2 Required 3 Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2021. (Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 536,000 January 01, 2021 Lease receivable Equipment 536,000 2 4,690 January 01, 2021 Lease receivable Cash 4,690 3 194,265 January 01, 2021 Cash Lease receivable OO 194,265 4 IV ULPI, PV OLDI, EVA ULDI, VA OLDI, FVAL OI DI dulur VAL UIDI) (use appropriate factoris) trom ne rapies providea.) Required: 1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2021. 2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. 3. Record any entry(s) necessary at December 31, 2021, the fiscal year-end. (Prepare any entry(s) recorded by the lessor at December 31, 2021, its fiscal year-end.) 2.85 points Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. Effective rate of interest 3 X % 4 1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2021. 2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. 3. Record any entry(s) necessary at December 31, 2021, the fiscal year-end. (Prepare any entry(s) recorded by the lessor at December 31, 2021, its fiscal year-end.) 2.85 points Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare any entry(s) recorded by the lessor at December 31, 2021, its fiscal year-end. (Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 December 31, 202 Interest receivable 34,643 > Interest revenue 34,643 X