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I just need help finding the values for the debit and credit pictured above, thank you! Exercise 21A-7 b-e Oriole Leasing Company leases a new
I just need help finding the values for the debit and credit pictured above, thank you!
Exercise 21A-7 b-e Oriole Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $92,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017, Oriole expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31, 2017. Click here to view the factor table Your answer is correct Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places e.g. 5,275.) Date Rent Receipt/ Payment Interest Revenue/ Expense Reduction of Principal Receivable/ Liability 92500 12/31/17 12/31/18 12/31/19 35893 7400 28493 64007 35893 5121 30772 33235 35893 2659 33234Step by Step Solution
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