Jordin is an equipment dealer that occasionally uses leasing as a means of selling its products. On $1$ January $20$X$1,$ Jordin leased equipment to Easten Corp. The lease term was four years with annual lease payments of $$5,410$ to be paid on each $31$ December. The equipment has an estimated zero residual value at the end of the lease term. The equipment was carried in Jordin$$s accounts at a cost of $$15,300.$ Jordin expects to collect all rentals from Easten, and there were no material cost uncertainties at the inception of the lease. The implicit interest rate in the lease was $11\%.($Round time value factor to $5$ decimal places, intermediate calculations and final answer to the nearest whole dollar amount.$)$

$($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

$1.$ This part of the question is not part of your Connect assignment.

$2-$a$.$ How much is the gross profit or loss recognized by Jordin?

$2-$b$.$ How much is the finance revenue recognized over the life of the lease?

Assume that the implicit interest rate is $6\%($not $11\%).$

$3-$a$.$ How much is the gross profit or loss recognized by Jordin?

$3-$b$.$ How much is the finance revenue recognized over the life of the lease?

$4.$ Give the entries made by Jordin $($based on the $11\%$ rate$)$ at the inception of the lease. Use the gross method. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.$)$

$5.$ Show all lease$-$related accounts as they would appear in the Statement of Financial Position and Statement of Comprehensive Income of the lessor at $31$ December $20$X$1,$ for the year then ended. The lessor$$s Statement of Financial Position is unclassified.