Complete this question by entering your answers in the tabs below. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessor. Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values: Prepare the appropriate entries for Rhone-Metro on December 31,2028 , assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $2,000. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld. Round your intermediat and final answers to nearest whole dollar: Show less A Journal entry worksheet Record the end of the lease in the books of lessor. Note: Enter debits before credits. amortization). 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31,2028 , assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $2,000. Complete this question by entering your answers in the tabs below. How should this lease be classified (a) by Western Soya Company (the lessee) and (b) by Rhone-Metro Industries (the lessor)? Prepare the appropriate entries for Western Soya on December 31, 2025 (the second lease payment and amortizath Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Rou and final answers to nearest whole dollar. 1 Record amortization expense in the books of lessee. 2 Record maintenance expense in the books of lessee. 3. Record cash payment in the books of lessee. Note: O= journal entry has been entered Journal entry worksheet Record cash received in the books of lessor. Note: Enter debits before credits. 1 Record lease in the books of lessee. 2 Record cash payment in the books of lessee. Note : O= journal entry has been entered Complete this question by entering your answers in the tabs below. Show how Rhone-Metro calculated the $155,000 annual lease payments. Note: Round your intermediate and final answers to nearest whole dollar. Problem 15-21 (Algo) Unguaranteed residual value; nonlease payments; sales-type lease [LO15-2, 15-6, 15-7] Rhone-Metro industries manufactures equipment that is sold or leased. On December 31, 2024, Rhone-Metro leased equipment to Western Soya Company for a forit-year period ending December 31,2028 , at which time possession of the leased asset will revert. back to Rhone-Metro. - The equipment cost $500,000 to manufacture aind thas an expected useful afe of six years. - its normal soles price is $547,590. - The expected residual value of $15,000 on December 31,2028 , is not guaranteed. - Equal payments under the lease are $155,000 (including $5,000 maintenance costs) and are due on December 31 of each year. - The first payment was made on December 31,2024. - Western Soya's incremental bortowing rate is 9% - Western Soya knows the interest rate implicit in the lease payments is 8%. - Both companies use straight-line depreciation or amortization. Note: Use tabies, Excel, or a financial calculator. (FV of \$1. PV of \$1, FVA of S1, PVA of S1, FVAD of S1 and PVAD of S1) Required: 1. Show how Rhone-Metro calculated the $155,000 annual lease parments. 2. How should this lease be classined (a) by Western Soya Company (the lessee) and (b) by Rhone-Metro Industries (the lessor)? 3. Prepare the appropriate entries for both Western Soya Compary and Rhone-Metro on December 31, 2024. 4. Prepare an amortization schedulo(s) describing the pattern of interest over the lease term for the lessee and the lessor. 5. Prepare the appropriate entries for both Western Soya and Phone-Metro on December 31, 2025 the second lease payment and amortization). 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2028, assuming the equipment is returned to Rnone-Motro and the actual residual value on that date is $2,000. Prepare the appropriate entries for Western Soya on December 31,2028 , assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $2,000. Note: if no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermed: and final answers to nearest whole dollar. 1 Record maintenance expense in the books of lessee. 2 Record amortization expense in the books of lessee. Note : = joumal entry has been entered Prepare the appropriate entries for Rhone-Metro on December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in and final answers to nearest whole dollar. 1 Record lease in the books of lessor. 2 Record cash received in the books of lessor. Complete this question by entering your answers in the tabs below. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee. Note: Round your intermedlate and final answers to nearest whole dollar. Enter all amounts as positive values
