9e

Please, provide answer for part e and show calculations. thanks

Oriole Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $ 65,000 and fair value of $ 87,000. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Oriole expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31, 2020. Click here to view factor tables. Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) t Receipt/ Payment Interest Revenue/ Expense Reduction of Principal Receivable/ Liability i $ $ CA i $ 87,000 33,759 6,960 26,799 60,201 33,759 4,816 28,943 31,258 33,759 2,501 31,258 Prepare the journal entry at commencement of the lease for Oriole. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1/1/20 Lease Receivable 87,000 Cost of Goods Sold 65,000 Sales Revenue 87000 Inventory 65,000 Prepare the journal entry at commencement of the lease for Sharrer. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1/1/20 Right-of-Use Asset 87,000 Lease Liability 87,000 (e) Prepare the journal entry at commencement of the lease for Sharrer, assuming (1) Sharrer does not know Oriole's implicit rate (Sharrer's incremental borrowing rate is 9%), and (2) Sharrer incurs initial directs costs of $ 9,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places eg. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/20