I have tried lease liability, lease liability- Machinery, Lease asset, leased asset- machinery, interest revenue, lease revenue.

All are wrong

On January 1, 2018, Bently works leased a piece of machinery from Gomez Bank. The lease is a(n) 18 year, non-cancellable lease that requires annual lease payments of $11,000 due at the beginning of each year. The lease has been determined to be a sales-type capital lease because at least one of the classification criteria has been met. Gomez Bank needs to determine the present value of the inception of the lease. Gomez desires/uses an implicit rate of 7% when pricing leases. Complete the following from the perspective of Gomez Bank. Which of the following financial statement item is impacted in this transaction? Leases Receivable The problem is solving for: Present Value The calculation involves: An Annuity Due Table Method PV Annuity Due PMT Factor = 11000 10.7632 118395 Date of Delivery Debit Accounts Credit To record the inception of the lease: lease receivable 118395 lease obligation 118395 Date of Delivery Accounts Debit Credit To record the inception of the lease: lease receivable 118395 lease liability 118395 To record the first payment: cash 11000 lease receivable 11000