(b) prepare all of the lessee's journal entries for the first year

Oriole Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Waterway Medical Center for a period of 10 years. The normal selling price of the machine is $528,538, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be $15,700. The hospital will pay rents of $64,000 at the beginning of each year. Oriole incurred costs of $275,000 in manufacturing the machine and $15,400 in legal fees directly related to the signing of the lease. Oriole has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 5%. Waterway Medical Center has an incremental borrowing rate of 5% and an expected residual value at the end of the lease of $10,000. Click here to view factor tables. Prepare a 10-year lease amortization schedule. (Round answers to decimal places eg. 5,275.) WATERWAY MEDICAL (Lessee) Lease Amortization Schedule (Annuity Due Basis, GRV) Interest on Reduction of Lease Unpaid Liability Liability Annual Lease ryment Plus GRV Lease Liability 528,537 64,000 64,000 464,537 64,000 23,227 40,773 423,764 64,000 21,188 42,812 380,953 64,000 19,048 44,952 336,000 64,000 16,800 47,200 288,800 64,000 14,440 49,560 239,240 64,000 11,962 52,038 187,202 64,000 9,360 54,640 132,562 64,000 6,628 57,372 75,190 64000 3,760 60,240 14,950 15700 747 14,950 0 $ $