$($Lessor Entries with Bargain Purchase Option$)$ A lease agreement between Mooney Leasing Company and Rode Company is described in E$20\mathrm{.}10.$

Instructions

Refer to the data in E$20\mathrm{.}10$ and do the following for the lessor. $($Round all numbers to the nearest cent.$)$

Compute the amount of the lease receivable at commencement of the lease.

Prepare a lease amortization schedule for Mooney for the $5-$year lease term.

Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years $2025$ and $2026.$ The lessor$$s accounting period ends on December $31.$ Reversing entries are not used by Mooney.

Suppose the collectibility of the lease payments was not probable for Mooney. Prepare all necessary journal entries for the company in $2025.$