Chapter 12. Help you can tell me right answer. thanks so much

Question 12 View Policies Hide Attempt History Attempt # Time Raw Score Used Assistances Attempt 1 2020?:4 _ 26 El 2% El 'F+11:37:14(America/New York -04:00) 50% Attempt 2 2020?:4 _ 27 El 2% J:+12:10:32 (America/New York -04:00) 71% Current Attempt in Progress Ayayai Corporation entered into a lease agreement on January 1, 2020, to provide Blossom Company with a piece of machinery. The terms of the lease agreement were as follows. The lease is to be for 3 years with rental payments of $13,936 to be made at the beginning of each year. The machinery has a fair value of $58,000, a bookvalue of $40,000, and an economic life of 8 years. At the end of the lease term, both parties expect the machinery to have a residual value of $20,000, none of which is guaranteed. The lease does not transferownership at the end of the lease term, does not have a bargain purchase option, and the asset is not of a specialized nature. The implicit rate is 4%, which is known by Dawkins. 9'5\"?pr Collectibility of the payments is probable. Click here to view factor tables. Your answer is partially correct. Prepare the amortization schedules Blossom will use over the lease term. BLOSSOM COMPANY Lease Amortization Schedule Annuity-Due Basis Date 1/1/20 1/1/21 1/1/22 Interest Reduction of Annual Payment on Liability Lease Liability Lease Liability 38674 1/1/20 15 13936 $ 1547 $ 12389 26285 13936 1051 12885 13400 13936 536 13400 O Lease Expense Schedule Date 1/1/20 12/31/20 35 12/31/21 12/31/22 (A) Straight-Line Expense (B) Interest on Lease Liability (C) Amortization of Right-of- Use Asset (and Liability) (A-B) Carrying Value of Right-of-Use Asset 38674 26285 13400 13936 1547 $ 12389 13936 1051 12885 13936 536 13400 Prepare the 2020 journal entries for Blossom. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. lf no entry is requir- Round present value factor calculations to 5 decimal places, e3. 125124 and the final answer to 0 decimal places eg. 58,971.) Date Account Tltles and Explanation Debit Credit Jan. 1 RightofUse Asset 38674 I: Lease Liability 38674 (To record lease) Jan. 1 Lease Liability 13936 Cash 13936 (To record first lease payment) Dec. 31 Lease Expense 13936 Lease Liability 1,547 Right-of-Use Asset 12,389 (To record lease expense and amortization) Prepare the 2020 journal entries for Ayayai. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. if no entry is required, select "l Round present value factor calculations to 5 decimal places, e3. 1.25124 and the nal answer to 0 decimal places e.g. 58,971.) Date Amount Tltles and Explanation Debit Credit Jan. 1 Cash 13936 Lease Expense 13936 (To record lease payments) Dec. 31 Lease Expense 13936 Lease Revenue 13936 (To record lease revenue) Dec. 31 Depreciation Expense l 5,000 I l Accumulated Depreciation-Leased Machinery 5,000 (To record depreciation) Suppose the lease were only for one year instead of 3 years, with just one lease payment at the beginning of the lease term. Prepare any journal entries Blossom would need, assuming it elects to use the short-term lease option. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971.) Date Account Titles and Explanation Debit Credit Jan. 1 Lease Liability 13936 Cash 13936