! Current Attempt in Progress The following facts pertain to a noncancelable lease agreement between Marigold Leasing Company and McKee Electronics, a lessee for a computer system, Commencement date Lease term Economic life of leased equipment Fair value of asset at October 1, 2020 Book value of asset at October 1, 2020 Residual value at end of lease term Lessor's implicit rate Lessee's incremental borrowing rate Annual lease payment due at the beginning of each year, beginning with October 1, 2020 October 1, 2020 6 years 6 years $367,702 $280,000 -0- 9 % $75,200 The collectibility of the lease payments is probable by the lessor, The asset will revert to the lessor at the end of the lease term. The straight-line depreciation method is used for all equipment. The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for properly as a finance lease by the lessee and as a sales-type lease by the lossor. Annual Lease Interest (9%) on Unpaid Reduction of Lease Balance of Lease Date Payment/Receipt Liability/Receivable Liability/Receivable Liability/Receivable 10/01/20 $367.702 10/01/20 $75.200 $75.200 292.502 10/01/21 75.200 $26,325 48.875 243.627 10/01/22 75200 21.926 53,274 190,353 10/01/23 75.200 17,132 58,068 132.285 10/01/24 75.200 11.906 63.294 68.991 10/01/25 75.200 68,991 -0- $451200 $83,498 $367.702 6,209 Assuming the lessor's accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to o decimal places s. 58.971.) Assuming the lessor's accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to decimal places es. 58,971.) (1) What items and amounts will appear on the lessor's income statement for the year ending September 30, 2021? $ $ $ (2) What items and amounts will appear on the lessor's balance sheet at September 30, 2021? Balance Sheet (Partial) Current Assets: Noncurrent Assets (3) What items and amounts will appear on the lessor's income statement for the year ending September 30, 2022? $ (4) What items and amounts will appear on the lessor's balance sheet at September 30, 20227 Balance Sheet (Partial) Current Assets: Question 1 of 1 (3) What items and amounts will appear on the lessor's income statement for the year ending September 30, 2022? $ (4) What Items and amounts will appear on the lessor's balance sheet at September 30, 2022? Balance Sheet (Partial) Current Assets $ Noncurrent Assets eTextbook and Media List of Accounts Assuming the lessor's accounting period ends on December 31 answer the following questions with respect to this lease agreement. (Round answers to decimal places es. 58,971.) (1) What items and amounts will appear on the lessor's income statement for the year ending December 31, 2020? $ $ 5 (2) What items and amounts will appear on the lessor's balance sheet at December 31, 2020? Balance Sheet (Partial) (2) What items and amounts will appear on the lessor's balance sheet at December 31, 2020? Balance Sheet (Partial) Current Assets: $ Noncurrent Assets $ (3) What items and amounts will appear on the lessor's income statement for the year ending December 31, 2021? $ (4) What items and amounts will appear on the lessor's balance sheet at December 31, 2021? Balance Sheet (Partial) Current Assets: $ Noncurrent Assets: e Textbook and Media List of Accounts Save for later Attempts: 0 of 3 used Submit Answer ! Current Attempt in Progress The following facts pertain to a noncancelable lease agreement between Marigold Leasing Company and McKee Electronics, a lessee for a computer system, Commencement date Lease term Economic life of leased equipment Fair value of asset at October 1, 2020 Book value of asset at October 1, 2020 Residual value at end of lease term Lessor's implicit rate Lessee's incremental borrowing rate Annual lease payment due at the beginning of each year, beginning with October 1, 2020 October 1, 2020 6 years 6 years $367,702 $280,000 -0- 9 % $75,200 The collectibility of the lease payments is probable by the lessor, The asset will revert to the lessor at the end of the lease term. The straight-line depreciation method is used for all equipment. The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for properly as a finance lease by the lessee and as a sales-type lease by the lossor. Annual Lease Interest (9%) on Unpaid Reduction of Lease Balance of Lease Date Payment/Receipt Liability/Receivable Liability/Receivable Liability/Receivable 10/01/20 $367.702 10/01/20 $75.200 $75.200 292.502 10/01/21 75.200 $26,325 48.875 243.627 10/01/22 75200 21.926 53,274 190,353 10/01/23 75.200 17,132 58,068 132.285 10/01/24 75.200 11.906 63.294 68.991 10/01/25 75.200 68,991 -0- $451200 $83,498 $367.702 6,209 Assuming the lessor's accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to o decimal places s. 58.971.) Assuming the lessor's accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to decimal places es. 58,971.) (1) What items and amounts will appear on the lessor's income statement for the year ending September 30, 2021? $ $ $ (2) What items and amounts will appear on the lessor's balance sheet at September 30, 2021? Balance Sheet (Partial) Current Assets: Noncurrent Assets (3) What items and amounts will appear on the lessor's income statement for the year ending September 30, 2022? $ (4) What items and amounts will appear on the lessor's balance sheet at September 30, 20227 Balance Sheet (Partial) Current Assets: Question 1 of 1 (3) What items and amounts will appear on the lessor's income statement for the year ending September 30, 2022? $ (4) What Items and amounts will appear on the lessor's balance sheet at September 30, 2022? Balance Sheet (Partial) Current Assets $ Noncurrent Assets eTextbook and Media List of Accounts Assuming the lessor's accounting period ends on December 31 answer the following questions with respect to this lease agreement. (Round answers to decimal places es. 58,971.) (1) What items and amounts will appear on the lessor's income statement for the year ending December 31, 2020? $ $ 5 (2) What items and amounts will appear on the lessor's balance sheet at December 31, 2020? Balance Sheet (Partial) (2) What items and amounts will appear on the lessor's balance sheet at December 31, 2020? Balance Sheet (Partial) Current Assets: $ Noncurrent Assets $ (3) What items and amounts will appear on the lessor's income statement for the year ending December 31, 2021? $ (4) What items and amounts will appear on the lessor's balance sheet at December 31, 2021? Balance Sheet (Partial) Current Assets: $ Noncurrent Assets: e Textbook and Media List of Accounts Save for later Attempts: 0 of 3 used Submit