Macinski Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $70,000 and fair value of $95,000. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Macinski expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31. 2020. Click here to view factor tables Your answer is correct. Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) Date Rent Receipt/Payment 1/1/20 Interest Revenue/Expense Reduction of Principal 12/31/20 36863 7600 29263 12/31/21 36863 5259 31604 12/31/22 eTextbook and Media List of Accounts 36863 2731 34133 Your answer is partially correct. Prepare the journal entry at commencement of the lease for Macinski. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation 1/1/20 Lease Receivable Debit Credit 95000 Cash Lease Liability Interest Expense eTextbook and Media List of Accounts 70000 19400 Your answer is correct. Prepare the journal entry at commencement of the lease for Sharrer. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation 1/1/20 Right-of-Use Asset Lease Liability eTextbook and Media List of Accounts Your answer is partially correct. Debit 95000 Credit 95000 Prepare the journal entry at commencement of the lease for Sharrer, assuming (1) Sharrer does not know Macinski's implicit rate (Sharrer's incremental borrowing rate is 9%), and (2) Sharrer incurs initial directs costs of $10,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275) Date Account Titles and Explanation 1/1/20 Lease Receivable Unearned Lease Revenue Cash Debit 95000 Credit 10000 85000