FIND WERE IT SAYS MISSING ANSWERS AND COMPLETE THOSE SECTIONS. SOME OF THE SECTIONS ARE ALREADY COMPLETED. DO NOT GET ANSWERS FROM OTHERS ON HERE AS THEY ARE WRONG.

On December 31, 2021, Rhone-Metro Industries leased equipment to Western Soya Co. for a four-year period ending December 31, 2025, at which time possession of the leased asset will revert back to Rhone-Metro. The equipment cost Rhone-Metro $610,523 and has an expected useful life of six years. Its normal sales price is $610,523. The lessee-guaranteed residual value at December 31, 2025, is $26,000. Equal payments under the lease are $170,000 and are due on December 31 of each year. The first payment was made on December 31, 2021. Western Soya's incremental borrowing rate is 13%. Western Soya knows the interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Show how Rhone-Metro calculated the $170,000 annual lease payments. 2. How should this lease be classified (a) by Western Soya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)? 3. Prepare the appropriate entries for both Western Soya Co. and Rhone-Metro on December 31, 2021. 4. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee and the lessor. 5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 (the second lease payment and amortization). 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 lessee Required 3 lessor Required 4 lessee Required 4 lessor Required 5 lessee Required 5 lessor Required 6 lessee Required 6 lessor Show how Rhone-Metro calculated the $170,000 annual lease payments. Guaranteed Residual Value Table or calculator function: PV of $1 n = 10% Present Value Amount to be recovered Less: Present value of the guaranteed residual value Amount to be recovered through periodic lease payments 610,523 17,758 592,765 $ Lease Payments Table or calculator function: PVAD of $1 10% amortization). 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 lessee Required 3 lessor Required 4 Required 4 lessee lessor Required 5 lessee Required 5 lessor Required 6 Required 6 lessee lessor Show how Rhone-Metro calculated the $170,000 annual lease payments. Guaranteed Residual Value Table or calculator function: PV of $1 n = 4 10% Present Value $ 610,523 Amount to be recovered Less: Present value of the guaranteed residual value Amount to be recovered through periodic lease payments 17,758 592,765 $ Lease Payments Table or calculator function: PVAD of $1 n = 4 i = 10% Lease Payments Lease payments at the beginning of each of the next four years MISSING ANSWER HERE Problem 15-21 (Algo) Guaranteed residual value; sales-type lease [LO15-2, 15-5, 15-6] On December 31, 2021, Rhone-Metro Industries leased equipment to Western Soya Co. for a four-year period ending December 31, 2025, at which time possession of the leased asset will revert back to Rhone-Metro. The equipment cost Rhone-Metro $610,523 and has an expected useful life of six years. Its normal sales price is $610,523. The lessee-guaranteed residual value at December 31, 2025, is $26,000. Equal payments under the lease are $170,000 and are due on December 31 of each year. The first payment was made on December 31, 2021. Western Soya's incremental borrowing rate is 13%. Western Soya knows the interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Show how Rhone-Metro calculated the $170,000 annual lease payments. 2. How should this lease be classified (a) by Western Soya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)? 3. Prepare the appropriate entries for both Western Soya Co. and Rhone-Metro on December 31, 2021. 4. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee and the lessor. 5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 (the second lease payment and amortization). 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 lessee Required 3 lessor Required 4 lessee Required 4 Required 5 lessor lessee Required 5 Required 6 lessor lessee Required 6 lessor How should this lease be classified (a) by Western Soya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)? Finance lease Western Soya Co. Rhone-Metro Industries Sales-type lease On December 31, 2021, Rhone-Metro Industries leased equipment to Western Soya Co. for a four-year period ending December 31, 2025, at which time possession of the leased asset will revert back to Rhone-Metro. The equipment cost Rhone-Metro $610,523 and has an expected useful life of six years. Its normal sales price is $610,523. The lessee-guaranteed residual value at December 31, 2025, is $26,000. Equal payments under the lease are $170,000 and are due on December 31 of each year. The first payment was made on December 31, 2021. Western Soya's incremental borrowing rate is 13%. Western Soya knows the interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Show how Rhone-Metro calculated the $170,000 annual lease payments. 2. How should this lease be classified (a) by Western Soya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)? 3. Prepare the appropriate entries for both Western Soya Co. and Rhone-Metro on December 31, 2021. 4. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee and the lessor. 5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 (the second lease payment and amortization). 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 lessee Required 3 lessor Required 4 lessee Required 4 lessor Required 5 Required 5 lessee lessor Required 6 lessee Required 6 lessor Prepare the appropriate entries for Western Soya Co. on December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 December 31, 202 Lease payable MISSING ANSWER On December 31, 2021, Rhone-Metro Industries leased equipment to Western Soya Co. for a four-year period ending December 31, 2025, at which time possession of the leased asset will revert back to Rhone-Metro. The equipment cost Rhone-Metro $610,523 and has an expected useful life of six years. Its normal sales price is $610,523. The lessee-guaranteed residual value at December 31, 2025, is $26,000. Equal payments under the lease are $170,000 and are due on December 31 of each year. The first payment was made on December 31, 2021. Western Soya's incremental borrowing rate is 13%. Western Soya knows the interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Show how Rhone-Metro calculated the $170,000 annual lease payments. 2. How should this lease be classified (a) by Western Soya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)? 3. Prepare the appropriate entries for both Western Soya Co. and Rhone-Metro on December 31, 2021. 4. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee and the lessor. 5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 (the second lease payment and amortization). 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 lessee Required 3 lessor Required 4 Required 4 lessee lessor Required 5 lessee Required 5 lessor Required 6 lessee Required 6 lessor Prepare the appropriate entries for Rhone-Metro on December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 December 31, 202 Lease receivable 610,523 MISSING ANSWER muut VIVECCHINI UI, LUZIVECOCHT Juyu ILICITICIILUI VUITUTT TULCI IJU. VEJLCHITJoyu VW LIIC "ILCICOLTUL HIPICILITIC lease payments is 10%. Both companies use straight-line depreciation. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Show how Rhone-Metro calculated the $170,000 annual lease payments. 2. How should this lease be classified (a) by Western Soya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)? 3. Prepare the appropriate entries for both Western Soya Co. and Rhone-Metro on December 31, 2021. 4. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee and the lessor. 5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 (the second lease payment and amortization). 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 3 lessee Required 3 lessor Required 4 lessee Required 4 lessor Required 5 lessee Required 5 Required 6 Required 6 lessor lessee lessor chedule(s) describing the pattern of interest over the lease term for the lessee. (Round your swers to nearest whole dollar. Enter all amounts as positive values.) Lease Amortization Schedule Effective Decrease in Payments Interest Balance Outstanding Balance Dec.31 2021 2021 170,000 0 592,765 422,765 295,041 154,545 170,000 2022 2023 42,276 29,504 170,000 127,724 140,496 154,545 592,765 170,000 170,000 680,000 2024 15,455 0 87,235 Ilds all expecteu useiui ne vi six years. ILS HOLIIdl Sdies price is POIU,52). The lessee-yudi dileeu residual value di vecember 31, 2025, is $26,000. Equal payments under the lease are $170,000 and are due on December 31 of each year. The first payment was made on December 31, 2021. Western Soya's incremental borrowing rate is 13%. Western Soya knows the interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Show how Rhone-Metro calculated the $170,000 annual lease payments. 2. How should this lease be classified (a) by Western Soya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)? 3. Prepare the appropriate entries for both Western Soya Co. and Rhone-Metro on December 31, 2021. 4. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee and the lessor. 5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 (the second lease payment and amortization). 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 lessee Required 3 Required 4 lessor lessee Required 4 lessor Required 5 lessee Required 5 lessor Required 6 Required 6 lessee lessor Prepare all appropriate entries for Western Soya on December 31, 2022 (the second lease payment and amortization). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar.) No Debit Credit Date General Journal December 31, 202 No Transaction Recorded 1 MISSING ANSWERS LULU, UL VICII LIHTC pusCJJIVI VILIICICuscuusYIL ICVCIL WUN LU INTIVIILITICLIU. HIC CYupITICIL CUOLINTIVIC IVICU UI, LU ITU has an expected useful life of six years. Its normal sales price is $610,523. The lessee-guaranteed residual value at December 31, 2025, is $26,000. Equal payments under the lease are $170,000 and are due on December 31 of each year. The first payment was made on December 31, 2021. Western Soya's incremental borrowing rate is 13%. Western Soya knows the interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Show how Rhone-Metro calculated the $170,000 annual lease payments. 2. How should this lease be classified (a) by Western Soya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)? 3. Prepare the appropriate entries for both Western Soya Co. and Rhone-Metro on December 31, 2021. 4. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee and the lessor. 5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 (the second lease payment and amortization). 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required lessee Required 3 lessor Required 4 lessee Required 4 Required lessor lessee Required 5 lessor Require lessee 6 Required lessor Prepare all appropriate entries for Western Soya on December 31, 2022 (the second lease payment and amortization). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 170,000 December 31, 202 Cash Lease receivable Interest revenue MISSING ANSWERS Ilds all expecteu useiuile di Six years. ILS TIO di Sdies price is POIU,325. The lessee-yudi dilleeu resiuudi value al vecember 1, 2025, is $26,000. Equal payments under the lease are $170,000 and are due on December 31 of each year. The first payment was made on December 31, 2021. Western Soya's incremental borrowing rate is 13%. Western Soya knows the interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Show how Rhone-Metro calculated the $170,000 annual lease payments. 2. How should this lease be classified (a) by Western Soya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)? 3. Prepare the appropriate entries for both Western Soya Co. and Rhone-Metro on December 31, 2021. 4. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee and the lessor. 5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 (the second lease payment and amortization). 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 lessee Required 3 lessor Required 4 lessee Required 4 Required 5 Required 5 lessor lessee lessor Required 6 Required 6 lessee lessor Prepare the appropriate entries for both Western Soya on December 31, 2025 assuming the equipment is returned to Rhone- Metro and the actual residual value on that date is $1,200. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit MISSING ANSWERS Ilds all expelleu useiui me vi six years. ILS Tomlidi Sales price is DOIV,52). Me lessee-yudi diileeu resiuudi vaiue di vecember 1, 2025, is $26,000. Equal payments under the lease are $170,000 and are due on December 31 of each year. The first payment was made on December 31, 2021. Western Soya's incremental borrowing rate is 13%. Western Soya knows the interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Show how Rhone-Metro calculated the $170,000 annual lease payments. 2. How should this lease be classified (a) by Western Soya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)? 3. Prepare the appropriate entries for both Western Soya Co. and Rhone-Metro on December 31, 2021. 4. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee and the lessor. 5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 (the second lease payment and amortization). 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 5 Required 1 Required 2 Required 4 lessee Required 3 Required 3 lessee lessor Required 4 lessor lessee Required 5 Required 6 lessor lessee Required 6 lessor Prepare the appropriate entries for Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit