Exercise 21A-10 a-d (Part Level Submission)

The following facts pertain to a non-cancelable lease agreement between Cullumber Leasing Company and Marin Company, a lessee.

Commencement dateMay 1, 2017Annual lease payment due at the beginning ofeach year, beginning with May 1, 2017$19,656.69Bargain purchase option price at end of lease term$7,000Lease term5yearsEconomic life of leased equipment10yearsLessor's cost$65,000Fair value of asset at May 1, 2017$93,000Lessor's implicit rate6%Lessee's incremental borrowing rate6%

The collectibility of the lease payments by Cullumber is probable.

(c)

Prepare the lease amortization schedule for Marin for the 5-year lease term.(Round answers to 2 decimal places, e.g. 5,275.15.)

MARIN COMPANY (Lessee)

Lease Amortization Schedule

Date

Annual Lease Payment Plus

BPO

Interest on

Liability

Reduction of Lease

Liability

Lease Liability

5/1/17$

$

$

$

5/1/17

5/1/18

5/1/19

5/1/20

5/1/21

4/30/22

$

$

$