Kingbird Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement. 1. 2. 3. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. The cost of the asset to the lessor is $451,000. The fair value of the asset at January 1, 2020, is $451,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $24,225, none of which is guaranteed. The agreement requires equal annual rental payments, beginning on January 1, 2020. Collectibility of the lease payments by Kingbird is probable. 4. 5. Click here to view factor tables. Assuming the lessor desires a 15% rate of return on its investment, calculate the amount of the annual rental payment required. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and the final answer to O decimal places e.g. 5,275.) Amount of the annual rental payment $ 83249 Prepare an amortization schedule that is suitable for the lessor for the lease term. (Round answers to 0 decimal places e.g. 5,275.) KINGBIRD LEASING COMPANY (Lessor) Lease Amortization Schedule Annual Lease Payment Plus URV Interest on Lease Receivable Recovery of Lease Receivable Date Lease Re 1/1/20 $ $ $ $ 1/1/20 83249 83249 1/1/21 83249 22065 61184 1/1/22 83249 18394 64855 1/1/23 83249 14503 68746 1/1/24 83249 10378 72871 1/1/25 83249 6006 77243 12/31/25 24225 1371 22854 $ $ $ Prepare all of the journal entries for the lessor for 2020 and 2021 to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor's annual accounting period ends on December 31, and it does not use reversing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 1/1/20 Lease Receivable 451000 Cost of Goods Sold 433922 Sales Revenue 4339 Inventory 4510 (To record the lease) Cash 83249 Lease Receivable 832 (To record the receipt of lease payment)