Cullumber Company, a machinery dealer, leased a machine to Blossom Corporation on January 1,2025. The lease is for an 8-year period and requires equal annual payments of $32,511 at the beginning of each year. The first payment is received on January 1,2025. Cullumber had purchased the machine during 2024 for $150,000. Collectibility of lease payments by Cullumber is probable. Cullumber set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Cullumber at the termination of the lease. Click here to view factor tables. (a) Your answer is correct. Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal ploces as displayed in the factor table provided and round final answer to 0 decimal places eg. 5,275.) Amount of the lease receivable \begin{tabular}{ccccccc} Periods & 2% & 2%% & 3% & 4% & 5% & 6% \\ \hline 1 & .98039 & .97561 & .97087 & .96154 & .95238 & .94340 \\ 2 & .96117 & .95181 & .94260 & .92456 & .90703 & .89000 \\ 3 & .94232 & .92860 & .91514 & .88900 & .86384 & .83962 \\ 4 & .92385 & .90595 & .88849 & .85480 & .82270 & .79209 \\ 5 & .90573 & .88385 & .86261 & .82193 & .78353 & .74726 \\ & & & & & & .70496 \\ 6 & .88797 & .86230 & .83748 & .79031 & .74622 & .66506 \\ 7 & .87056 & .84127 & .81309 & .75992 & .71068 & .62741 \\ 8 & .85349 & .82075 & .78941 & .73069 & .67684 & .59190 \\ 9 & .83676 & .80073 & .76642 & .70259 & .64461 & .55839 \\ 10 & .82035 & .78120 & .74409 & .67556 & .61391 & .52679 \\ 11 & .80426 & .76214 & .72242 & .64958 & .58468 & .49697 \\ 12 & .78849 & .74356 & .70138 & .62460 & .55684 & .46884 \\ 13 & .77303 & .72542 & .68095 & .60057 & .53032 & .44230 \\ 14 & .75788 & .70773 & .66112 & .57748 & .50507 & .41727 \\ 15 & .74301 & .69047 & .64186 & .55526 & .48102 & .39365 \\ 16 & .72845 & .67362 & .62317 & .53391 & .45811 & .37136 \\ 17 & .71416 & .65720 & .60502 & .51337 & .43630 & .35034 \\ 18 & .70016 & .64117 & .58739 & .49363 & .41552 & .33051 \\ 19 & .68643 & .62553 & .57029 & .47464 & .39573 & \end{tabular} Prepare all necessary journal entries for Cullumber for 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places eg. 5,275. Record journal entries in the order presented in the problem.)
