Dunlap Company leased a large copier to Rust Company for a three-year period. Dunlap paid $27,000 for the copier and immediately leased it on January 1, 2020 (estimated useful life is four years, and Dunlap expects the expected residual value at the end of the lease term is $5,400). Dunlap used an expected rate of return of 6% (known by Rust). The lessee agreed to guarantee two-thirds ($3,600) of the residual value. The first lease payment is due on January 1, 2020, and the accounting periods for both entities end on December 31, At the lease termination date, an independent appraiser provided an estimated residual value of $2,700. The lessee immediately paid the difference of $900 ($3,600 guaranteed residual value minus $2,700, the actual residual value). Required a. Compute the lease payment for the lessor and the lease receivable to be capitalized by the lessor. Note: Round answer to the nearest dollar. Note: Do not use a negative sign with your answer. Lease payment s 7.929- Lease receivable s 27,000- Journal Entries: Collection is Probable Journal Entries: Collection is Not Probable b. Provide the entries for the lessor on January 1, 2020. Note: Round your answers to the nearest whole dollar. Date Account Name Jan 1, 2020 Lease Receivable Inventory To record lease receivable Jan 1, 2020 Cash Lease Receivable To recont receipt.of lease payment Dr. Cr. 27,000 ~ 27,000 = 7.329 7929 c. Provide the entries for the lessor through the lease term. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round your answers to the nearest whole dollar. Date Account Name Dec. 31, 2020 Lease Receivable Dr. Cr. 0x 0 0 0 % Interest Revenue To record interest Jan. 1, 2021 Cash : 0x 0 Lease Receivable 4 0 x To record receipt of lease payment Dec. 31, 2021 Lease Receivable Interest Revenue 0 * 0~ 0 0x To record interest Jan. 1, 2022 Cash 0x 0 Lease Receivable To record receipt of lease payment Dec. 31, 2022 Lease Receivable Interest Revenue To record interest Jan. 1, 2023 Cash Interest Expense Check 0 Interest Expense Lease Receivable To record return of equipment OO 4 " 0x 0 0x 0x 00 3 0x 03 xx 0x 0 S x 0x 0~ 05 0x Recording Sales-Type Lease, Residual Value-Lessor Dunlap Company leased a large copier to Rust Company for a three-year period. Dunlap paid $27,000 for the copier and immediately leased it on January 1, 2020 (estimated useful life is four years, and Dunlap expects the expected residual value at the end of the lease term is $5,400). Dunlap used an expected rate of return of 6% (known by Rust). The lessee agreed to guarantee two-thirds ($3,600) of the residual value. The first lease payment is due on January 1, 2020, and the accounting periods for both entities end on December 31. At the lease termination date, an independent appraiser provided an estimated residual value of $2,700. The lessee immediately paid the difference of $900 ($3,600 guaranteed residual value minus $2,700, the actual residual value). Required a. Compute the lease payment for the lessor and the lease receivable to be capitalized by the lessor Note: Round answer to the nearest dollar. Note: Do not use a negative sign with your answer. Lease payment Lease receivable $ 7.929 27,000 Journal Entries: Collection is Probable Journal Entries: Collection is Not Probable d. Instead assume that the collectibility of the lease payments by Rust Company was not probable. Record the required entry on January 1, 2020. Date Jan 1, 2020 Cash Account Name Interest Revenue Dr. Cr. 0x Check