Annual lease payment due at the beginning of each year, beginning with May 1, 2017 Bargain-purchase option price at end of $23,400.83 $3,900 lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate 5 years 10 years $58,000 $100,000 10 % 10 % The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs Your answer is correct. Compute the amount of the lease receivable at the inception of the lease. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and Round answers to 2 decimal places, e.g. 16.25.) Lease receivable at inception 100000.01 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is correct. Prepare a lease amortization schedule for Tamarisk Leasing Company for the 5-year lease term. (Round answers to 2 decimal places, e.g. 16.25.) TAMARISK LEASING COMPANY (Lessor) Lease Amortization Schedule Annual Lease Payment Plus Recovery of Lease Receivable Interest on Lease Receivable Lease Receivable Date BPO 100000.01 76599.18 60858.27 43543.25 24496.75 3545.6 23400.83 23400.83 23400.83 23400.83 23400.83 3900 23400.83 15740.91 17315.02 19046.5 20951.15 3545.44 7659.92 6085.83 4354.33 2449.68 354.56 5/1/20 5/1/21 4/30/22 Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2017, 2018, and 2019. The lessor's accounting period ends on December 31. Reversing entries are not used by Tamarisk. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 16.2 5.) Account Titles and Explanation Debit Credit Date Lease Receivable 100000.01 100000.01 To record the lease.) Cash 23400.83 Lease Receivable 23400.83 To record lease payment.) 12/31/17 Interest Expense 5106.61 Interest Payable 5106.61 12/31/18 12/31/19 4057.22 12/31/19Y Annual lease payment due at the beginning of each year, beginning with May 1, 2017 Bargain-purchase option price at end of $23,400.83 $3,900 lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate 5 years 10 years $58,000 $100,000 10 % 10 % The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs Your answer is correct. Compute the amount of the lease receivable at the inception of the lease. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and Round answers to 2 decimal places, e.g. 16.25.) Lease receivable at inception 100000.01 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is correct. Prepare a lease amortization schedule for Tamarisk Leasing Company for the 5-year lease term. (Round answers to 2 decimal places, e.g. 16.25.) TAMARISK LEASING COMPANY (Lessor) Lease Amortization Schedule Annual Lease Payment Plus Recovery of Lease Receivable Interest on Lease Receivable Lease Receivable Date BPO 100000.01 76599.18 60858.27 43543.25 24496.75 3545.6 23400.83 23400.83 23400.83 23400.83 23400.83 3900 23400.83 15740.91 17315.02 19046.5 20951.15 3545.44 7659.92 6085.83 4354.33 2449.68 354.56 5/1/20 5/1/21 4/30/22 Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2017, 2018, and 2019. The lessor's accounting period ends on December 31. Reversing entries are not used by Tamarisk. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 16.2 5.) Account Titles and Explanation Debit Credit Date Lease Receivable 100000.01 100000.01 To record the lease.) Cash 23400.83 Lease Receivable 23400.83 To record lease payment.) 12/31/17 Interest Expense 5106.61 Interest Payable 5106.61 12/31/18 12/31/19 4057.22 12/31/19Y