Marin Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement.

1.		The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years.
2.		The cost of the asset to the lessor is $291,000. The fair value of the asset at January 1, 2020, is $291,000.
3.		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 $29,100, none of which is guaranteed.
4.		The agreement requires equal annual rental payments, beginning on January 1, 2020.
5.		Collectibility of the lease payments by Marin is probable.

.

Assuming the lessor desires a 9% 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 0 decimal places e.g. 5,275.)

Amount of the annual rental payment

$enter the Amount of the annual rental payment in dollars

Prepare an amortization schedule that is suitable for the lessor for the lease term. (Round answers to 0 decimal places e.g. 5,275.)

MARIN LEASING COMPANY (Lessor) Lease Amortization Schedule
Date		Annual Lease Payment Plus URV		Interest on Lease Receivable		Recovery of Lease Receivable		Lease Receivable
1/1/20		$enter a dollar amount

$enter a dollar amount

$enter a dollar amount

		$enter a dollar amount
1/1/20		enter a dollar amount		enter a dollar amount

		enter a dollar amount		enter a dollar amount
1/1/21		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
1/1/22		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
1/1/23		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
1/1/24		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
1/1/25		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
12/31/25		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount

		$enter a total amount for this column		$enter a total amount for this column		$enter a total amount for this column

eTextbook and Media

List of Accounts

Incorrect answer iconYour answer is incorrect.

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 lessors 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

	enter an account title To record the lease on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record the lease on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record the lease on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record the lease on January 1 2017	enter a debit amount	enter a credit amount
	(To record the lease)

	enter an account title To record the receipt of lease payment on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record the receipt of lease payment on January 1 2017	enter a debit amount	enter a credit amount
	(To record the receipt of lease payment)

	enter an account title for the journal entry on December 31 2017	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31 2017	enter a debit amount	enter a credit amount

	enter an account title for the journal entry on January 1 2018	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1 2018	enter a debit amount	enter a credit amount

	enter an account title for the journal entry on December 31 2017	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31 2017	enter a debit amount	enter a credit amount