(b) Calculate the amount of the annual rental payment required. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.) Annual rental payment $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer (c) Compute the value of the lease liability to the lessee. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.) Present value of minimum lease payments $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer and enter for the amounts. Round answers to 0 decimal places e.g. 58,972. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credi 1/1/20 Leased Equipment Lease Liability (To record the lease.) Lease Liability Cash (To record lease payment.) 1/1/21 Depreciation Expense Accumulated Depreciation-Capital Leases (To record amortization.) Interest Expense TANT IN IONI Interest Payable MI TAK MOTO (To record interest.) 12/31/20 Lease Liability Interest Payable 12/31/21 Depreciation Expense Accumulated Depreciation-Capital Leases (To record amortization.) Interest Expense Interest Payable (To record interest.) automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places e.g. 58,972. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Crei 1/1/20 Lease Receivable Cost of Goods Sold Sales Revenue Inventory (To record the lease.) 1/1/20 Cash Lease Receivable TIIMI TITUD (To record lease payment.) 12/31/20 Interest Receivable Interest Revenue 1/1/21 Cash Interest Receivable 12/31/21 Interest Receivable Interest Revenue eTextbook and Media (f) Suppose Sandhill expects the residual value at the end of the lease term to be $50,000 but still guarantees a residual of $60,000. Compute the value of the lease liability at lease commencement. Lease liability $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer (b) Calculate the amount of the annual rental payment required. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.) Annual rental payment $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer (c) Compute the value of the lease liability to the lessee. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.) Present value of minimum lease payments $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer and enter for the amounts. Round answers to 0 decimal places e.g. 58,972. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credi 1/1/20 Leased Equipment Lease Liability (To record the lease.) Lease Liability Cash (To record lease payment.) 1/1/21 Depreciation Expense Accumulated Depreciation-Capital Leases (To record amortization.) Interest Expense TANT IN IONI Interest Payable MI TAK MOTO (To record interest.) 12/31/20 Lease Liability Interest Payable 12/31/21 Depreciation Expense Accumulated Depreciation-Capital Leases (To record amortization.) Interest Expense Interest Payable (To record interest.) automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places e.g. 58,972. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Crei 1/1/20 Lease Receivable Cost of Goods Sold Sales Revenue Inventory (To record the lease.) 1/1/20 Cash Lease Receivable TIIMI TITUD (To record lease payment.) 12/31/20 Interest Receivable Interest Revenue 1/1/21 Cash Interest Receivable 12/31/21 Interest Receivable Interest Revenue eTextbook and Media (f) Suppose Sandhill expects the residual value at the end of the lease term to be $50,000 but still guarantees a residual of $60,000. Compute the value of the lease liability at lease commencement. Lease liability $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit
