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Current Attempt in Progress ting Blossom Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value

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Current Attempt in Progress ting Blossom Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $90,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3 year useful life and no residual value. The lease was signed on January 1, 2017. Blossom expects to earn an 8% return on its investment, and this implicitrate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31, 2017 Click here to view the factor table, apport Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places . 5,275) Interest Revenue/Expense Reduction of Principal Receivable/Liability Date 1/1/17 Rent Receipt Payment $ 12/31/17 12/31/18 12/31/19 Prepare the journal entry at commencement of the lease for Blossom. (Credit account titles are automatically indented when amount is enti Do not indent manually.) Debit Credit Date Account Titles and Explanation 1/1/17 Prepare the journal entry at commencement of the lease for Sharrer. (Credit account titles are automatically indented when amount is entered Do not Indent manually) Debit Credit Date Account Titles and Explanation 1/1/17 Prepare the journal entry at commencement of the lease for Sharrer, assuming (1) Sharrer does not know Blossom's implicit rate (Sharrer's incremental borrowing rate is 9%), and (2) Sharrer incurs initial directs costs of $9,500. (Credit account titles are autom tically 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 decimal places es. 5,275) Date Account Titles and Explanation Debit Credit 1/1/17

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