Blossom Co. as lessee records a finance lease of machinery on January 1, 2021. The seven annual lease payments of $750,000 are made at the end of each year. The present value of the lease payments at 8% is $3,905,000. Blossom uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value).

(a)

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Prepare an amortization table for 20121 and 2022.

Blossom Co. Lease Amortization Schedule
Date		Annual Lease Receipt/Payment		Interest on Receivable/Liability		Reduction in Receivable/Liability		Lease Receivable/Liability
1/1/21								$
12/31/21		$		$		$
12/31/22

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(b)

Prepare all of Blossom's journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
(To record the lease)
(To record the first lease payment)
(To record depreciation)