eBook Prir Question 3 Partially correct Mark 2.15 out of 10.00 p Flag question Recording Sales-Type Lease, Unguaranteed Residual Value-Lessor Flint Company leased equipment to Land Company for a five-year period. Flint paid $46,965 for the equipment, its current carrying value (estimated useful life five years). The lease started on January 1, 2020. Flint uses a target rate of return of 8% in all lease contracts. The first payment was on January 1, 2020, and the accounting periods end on December 31. The equipment reverts to the lessor at the end of the lease term at which time the lessor estimates that the equipment will have an unguaranteed residual value of $2,000. Required a. Compute the annual payment for the lessor. Note: Round answer to the nearest dollar. Note: Do not use a negative sign with your answer. $ 0x Amortization Schedule Journal Entries EDUSIOSUULISC Dr. OX 0 Cr. 0 0x 0X 0 X 0 Date Account Name Jan. 1, 2020 Sales Revenue Cash To record lease receivable Jan. 1, 2020 Lease Incentive Payable Deposit Liability To record lease payment Dec. 31, 2020 Lease Incentive Payable Lease Liability To record interest Jan. 1, 2021 Sales Revenue Lease Incentive Payable To record lease payment Dec. 31, 2021 Lease Revenue Lease Revenue To record interest Ox 0 0 0x X 0x 0 0 0 X 0 0X 0 d. Record the entry on January 1, 2025, for the return of the equipment assuming the equipment had a fair value of $2,000. Date Account Name Jan. 1, 2025 Amortization Expense Depreciation Expense X x Dr. 0 X 0 Cr. 0 0x eBook Prir Question 3 Partially correct Mark 2.15 out of 10.00 p Flag question Recording Sales-Type Lease, Unguaranteed Residual Value-Lessor Flint Company leased equipment to Land Company for a five-year period. Flint paid $46,965 for the equipment, its current carrying value (estimated useful life five years). The lease started on January 1, 2020. Flint uses a target rate of return of 8% in all lease contracts. The first payment was on January 1, 2020, and the accounting periods end on December 31. The equipment reverts to the lessor at the end of the lease term at which time the lessor estimates that the equipment will have an unguaranteed residual value of $2,000. Required a. Compute the annual payment for the lessor. Note: Round answer to the nearest dollar. Note: Do not use a negative sign with your answer. $ 0x Amortization Schedule Journal Entries EDUSIOSUULISC Dr. OX 0 Cr. 0 0x 0X 0 X 0 Date Account Name Jan. 1, 2020 Sales Revenue Cash To record lease receivable Jan. 1, 2020 Lease Incentive Payable Deposit Liability To record lease payment Dec. 31, 2020 Lease Incentive Payable Lease Liability To record interest Jan. 1, 2021 Sales Revenue Lease Incentive Payable To record lease payment Dec. 31, 2021 Lease Revenue Lease Revenue To record interest Ox 0 0 0x X 0x 0 0 0 X 0 0X 0 d. Record the entry on January 1, 2025, for the return of the equipment assuming the equipment had a fair value of $2,000. Date Account Name Jan. 1, 2025 Amortization Expense Depreciation Expense X x Dr. 0 X 0 Cr. 0 0x
