Exercise 21-6 Kingbird Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2017. The lease is for an 8-year period and requires equal annual payments of $38,514 at the beginning of each year. The first payment is received on January 1, 2017. Kingbird had purchased the machine during 2016 for $186,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Kingbird. Kingbird set the annual rental to ensure an 11% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Kingbird at the termination of the lease. Click here to view factor tables

Compute the amount of the lease receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

The amount of the lease receivable

$enter the amount of the lease receivable rounded to 0 decimal places

Prepare all necessary journal entries for Kingbird for 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places e.g. 58,971.)

Date	Account Titles and Explanation	Debit	Credit
1/1/17	enter an account title to record the lease on January 1, 2017	enter a debit amount	enter a credit amount
	enter an account title to record the lease on January 1, 2017	enter a debit amount	enter a credit amount
	enter an account title to record the lease on January 1, 2017	enter a debit amount	enter a credit amount
	enter an account title to record the lease on January 1, 2017	enter a debit amount	enter a credit amount
	(To record the lease.)
	enter an account title to record the first lease payment on January 1, 2017	enter a debit amount	enter a credit amount
	enter an account title to record the first lease payment on January 1, 2017	enter a debit amount	enter a credit amount
	(To record the first lease payment.)
12/31/17	enter an account title to record the transaction on December 31, 2017	enter a debit amount	enter a credit amount
	enter an account title to record the transaction on December 31, 2017	enter a debit amount	enter a credit amount