Exercise 21A-8 a-d Wildhorse 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 $32,055 at the beginning of each year. The first payment is received on January 1, 2017. Wildhorse had purchased the machine during 2016 for $129,000. Collectibility of lease payments by Wildhorse is probable. Wildhorse set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Wildhorse at the termination of the lease Click here to view the factor table Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places e.g. 5,275.) Amount of the lease receivable SHOW LIST OF ACCOUNTS LINK TO TEXT | | LINK TO TEXT Prepare all necessary journal entries for Wildhorse for 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places e.g. 5,275. Date Account Titles and Explanation Debit Credit Date Account Titles and Explanation Debit Credit (To record the lease) (To record the first lease payment) 12/31/17 Suppose the collectibility of the lease payments was not probable for Wildhorse. Prepare the necessary journal entry for the company in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Date Account Titles and Explanation Credit SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Suppose at the end of the lease term, Wildhorse receives the asset and determines that it actually has a fair value of $960 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Wildhorse at the end of the lease term. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to o decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work Exercise 21A-8 a-d Wildhorse 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 $32,055 at the beginning of each year. The first payment is received on January 1, 2017. Wildhorse had purchased the machine during 2016 for $129,000. Collectibility of lease payments by Wildhorse is probable. Wildhorse set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Wildhorse at the termination of the lease Click here to view the factor table Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places e.g. 5,275.) Amount of the lease receivable SHOW LIST OF ACCOUNTS LINK TO TEXT | | LINK TO TEXT Prepare all necessary journal entries for Wildhorse for 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places e.g. 5,275. Date Account Titles and Explanation Debit Credit Date Account Titles and Explanation Debit Credit (To record the lease) (To record the first lease payment) 12/31/17 Suppose the collectibility of the lease payments was not probable for Wildhorse. Prepare the necessary journal entry for the company in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Date Account Titles and Explanation Credit SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Suppose at the end of the lease term, Wildhorse receives the asset and determines that it actually has a fair value of $960 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Wildhorse at the end of the lease term. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to o decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work