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Current Attempt in Progress Ivanhoe Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year

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Current Attempt in Progress Ivanhoe Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $30,992 at the beginning of each year. The first payment is received on January 1. 2020. Ivanhoe had purchased the machine during 2016 for $142,000. Collectibility of lease payments by Ivanhoe is probable. Ivanhoe 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 Ivanhoe at the termination of the lease. Click here to view factor tables. Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to decimal places e.g. 5,275.) Amount of the lease receivable $ eTextbook and Media List of Accounts Prepare all necessary journal entries for Ivanhoe for 2020. (Credit account titles are automatically indented when amount is Prepare all necessary journal entries for Ivanhoe for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/20 (To record the lease) Lease Liability Cash (To record the first lease payment) 12/31/20 Lease Liability e Textbook and Media Suppose the collectibility of the lease payments was not probable for Ivanhoe. Prepare the necessary journal entry for the company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit 1/1/20 eTextbook and Media List of Accounts Suppose at the end of the lease term, Ivanhoe receives the asset and determines that it actually has a fair value of $1,080 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Ivanhoe at the end of the lease term. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places e.g. 5,275.) Debit Credit Date Account Titles and Explanation 1/1/20

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