Edom Company, the lessor, enters into a lease with Davis Company to lease equipment to Davis beginning January $1,2019.$ The lease terms, provisions, and related events are as follows:

$1.$ The lease term is $5$ years. The lease is noncancelable and requires annual rental receipts of $$100,000$ to be made in advance at the beginning of each year.

$2.$ The equipment costs $$313,000.$ The equipment has an estimated life of $6$ years and, at the end of the lease term, has an unguaranteed residual value of $$20,000$ accruing to the benefit of Edom.

$3.$ Davis agrees to pay all executory costs directly to a third party.

$4.$ The interest rate implicit in the lease is $14\%.$

$5.$ The initial direct costs are insignificant and assumed to be zero.

$6.$ It is probable that Edom will collect the lease payments.

Required:

$1.$ Next Level Assuming that the lease is a sales$-$type lease from Edom$$s point of view, calculate the selling price.

$2.$ Prepare a table summarizing the lease receipts and interest income earned by Edom.

$3.$ Prepare a table showing the accretion of the unguaranteed residual asset.

$4.$ Prepare journal entries for Edom, the lessor, for the years $2019$ and $2020.$How does grading work?

$4$b$.$ Prepare journal entries for Edom, the lessor, for the year $2020.$

Prepare a table showing the accretion of the unguaranteed residual asset.

Additional instructions

How does grading work?

PLEASE FILL IN THE RED CELLS, THANK YOU!