Bidwell Leasing purchased a single-engine plane for its fair value of $685.464 and leased it to Red Baron Flying Club on January 1 . 2021. IEV of S1, PY of S1. EVA of S1. PVA of S1. EVAD of \$1 and PVAD of \$1) (Use appropriate foctoris) from the tables provided.) Terms of the lease agreement and related facts were: a. Eight annual payments of $120,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 through 2027. Red Baron knows that Bidwell Leasing's impilicit interest rate was 11%. The estimated useful life of the plane is eight years. Payments were calculated as follows: -Present value of an annuity due of $1:n=8,1=11%. b. Red Haron's incremental borrowing rate is 12%. c. Incremental Costs of negotiating and consummating the completed lease transaction incurred by Bldweil Leasing were $18.746. Required: 1. How should this lease be classified (a) by Bidwell Leasing (the lessor) and (b) by Red Baron (the lessee)? 2. Prepare the appropriate entries for both Red Baron Flying Club and Bidwell Leasing on January 1, 202t: 3. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Red tlaron Flying Club. 4. Determine the effective rate of interest for Bidwell Leasing for the purpose of recognizing interest reventie over the lease term. 5. Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Bidwell Leasing. 6. Prepare the appropriate entries for both Red Baron and Bidwell Leasing on December 31, 2021 (the second lease payment) Both companies use straight-line depreciation. 7. Prepare the appropriate entries for both Red Baron and Bidwell Leasing on December 31, 2027 (the final lease payment) Required: 1. How should this lease be classified (a) by Bidyyell Leasing (the lessor) and (b) by Red Baron (the lessee?? 2. Prepare the appropriate entries for both Red Baron Flying Club and Bidwell Leasing on January 1, 2021. 3. Prepare an amortization schedule that describes the pattern of interest expense over the lease term for Red Baron Fying Club. 4. Determine the effective rate of Interest for Bidwell Leasing for the purpose of recognizing interest revenue over the lease terimi 5. Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Bidwell teating: 6. Prepare the appropriate entries for both Red Baron and Bidwell Leasing on December 31, 2021 (the second lease payment) Both companies use straight tine depreciation. 7. Prepare the appropriate entries for both Red Baron and Bidwell Leasing on December 31,2027 (the final lease payment). Complete this question by entering your answers in the tabs below. Prepare the appropriate entries for both Red Baron Flying Club and Bidwell Leasing on lanuary 1,2021. (If no entry is reguired for a transaction/event, frelect "No journal entry required" in the flist account fleld, Round your intermediate and final answers to nearest whole dollar.) Journal entry worksheet