on december 31, 2019, burke corporation signed a 5-year

CALQURAIDELSERN ONT A Exercise 21-08 Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $35,004 at the beginning of each year. The first payment is received on January 1, 2020. Crosley had purchased the machine during 2016 for $160,000. Collectibility of lease payments by Crosley is probable. Crosley set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Crosley at the termination of the lease. Click here to view factor tables Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer too decimal places e.g. 5,275.) Amount of the lease receivables SHOW LIST OF ACCOUNTS Prepare all necessary journal entries for Crosley for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to o decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/20 CALORLATOK FULL SCREEN PRINTER VERSION BACK NEXT (To record the first lease payment) 12/31/20 Suppose the collectibility of the lease payments was not probable for Crosley. Prepare the necessary Journal entry for the company in 2020. (Credit account titles are automatically indented when amount is entered. Do not Indent manually) Date Account Tities and Explanation 1/1/20 SHOW LIST OF ACCOUNTS Suppose at the end of the lease term, Crosley receives the asset and determines that it actually has a fair value of $1.000 instead of the antipated residual value of 0. Record the entry to recognize the receipt of the asset for Crosley at the end of the lease term. (Credit account titles are automatically indented when amount is entered. Do not indent many Round answers to O decimal places .0. 5.275.) Date Account Titles and Explanation Debit