Chapter 21 Homework Question 4 of 8 View Policies Current Attempt in Progress -/1 Kingbird Leasing Company signs a lease agreement on January 1, 2020, to lease warehouse equipment to Blossom Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. 2. Blossom has the option to purchase the equipment for $20,100 upon termination of the lease. It is not reasonably certain that Blossom will exercise this option. The equipment has a cost of $166,000 and fair value of $191,300 to Kingbird Leasing. The useful economic life is 2 years, with a residual value of $20,100. 3. Kingbird Leasing desires to earn a return of 6% on its investment. 4. Collectibility of the payments by Kingbird Leasing is probable. Click here to view factor tables. Chapter 21 Homework Question 4 of 8 (a) -/1 Prepare the journal entries on the books of Kingbird to recognize the establishment of the lease and the receipt of payments in 2020 and 2021. Do not include the return of the equipment at lease termination. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit