(Lessor Entries, Sales-Type Lease) Simon Company, a machinery dealer, leased a
machine to Dex Corporation on January 1, 2014. The lease is for an					8	-year period
and requires equal annual payments of			$35,013	at the beginning of each year. The first
payment is received on January 1, 2014. Wadkins had purchased the machine during 2013 for
$160,000	Collectibility of lease payments is reasonably predictable, and no important
uncertainties surround the amount of costs yet to be incurred by Simon. Simon set the annual
rental to ensure an		11%	rate of return. The machine has an economic life of
10	years with no residual value and reverts to Simon at the termination of the lease.
Instructions: Fill in all chart entries and show calculations
(a) Compute the amount of the lease receivable. (Use the Excel Present Value formula "=PV(" to solve.)
	Use this area to enter the Present Value formula
(b) Prepare all necessary journal entries for Simon for 2014.
Jan 1, 14	Account Title				Amount
	Account Title				Amount
	Account Title					Amount
	Account Title					Amount
Jan 1, 14	Account Title				Amount
	Account Title					Amount
Dec 31, 14	Account Title				Amount
	Account Title					Amount