Jolo Company is in the business of leasing new sophisticated equipment. As lessor, Jolo Company expects a 12% return on its net investment. All leases are classified as direct financing lease. At the end of the lease term, the equipment will revert to Jolo Company. On January 1, 2011 an equipment is leased to a lessee with the following information. Cost of equipment to Jolo Residual value - unguaranteed Annual rental payable in advance Useful life and lease term Implicit interest rate First lease payment 5,250,000 600,000 900,000 8 years 12% January 1, 2011 Required: 1. Compute the total financial revenue. 2. Prepare a table of amortization for the lease receivable and interest income. 3. Prepare the entries for 2011 and 2012. 4. Prepare the entries for 2018. 5. Prepare the entry on January 1, 2019 to record the return of the equipment from the lessee. The fair value of the equipment on this date is P500,000