On December 31, 2021, Rhone-Metro Industries leased equipment to Western Soya Co. for a four-year period ending December 31, 2025, at which time possession of the leased asset will revert back to Rhone-Metro. The equipment cost Rhone-Metro $302,915 and has an expected useful life of six years. Its normal sales price is $302,915. The lessee-guaranteed residual value at December 31, 2025, is $17,000. Equal payments under the lease are $80,000 and are due on December 31 of each year. The first payment was made on December 31, 2021. Western Soya's incremental borrowing rate is 11%. Western Soya knows the interest rate implicit in the lease payments is 7%. Both companies use straight-line depreciation. Use (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Show how Rhone-Metro calculated the $80,000 annual lease payments. 2. How should this lease be classified (a) by Western Sdya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)? 3. Prepare the appropriate entries for both Western Soya Co. and Rhone-Metro on December 31, 2021. 4. Prepare an amortization schedule(s) describing the pattern of Interest over the lease term for the lessee and the lesson. 5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 (the second lease payment and amortization) 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 3 Required 3 Required 4 Required 4 Required 5 Required 5 Required 6 Required 6 Required 1 Required 2 lessee lessor lessee lessor lessee lessor lessee lessor Prepare the appropriate entries for Rhone-Metro on December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) are in nale Pro 200 HR ULUI 4. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee and the lessor. 5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 (the second lease payment and amortization), 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,200. Answer is not complete Complete this question by entering your answers in the tabs below. Required: Required 2 Required Required Required 4 Required 4 Required S Required 5 Required 6 Required 6 lessee lessor lessen lessor lessee lessor lessee lessor Prepare the appropriate entries for Rhone-Metro on December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Date General Journal Dobit Credit December 31, 202 Lease receivable 302,915 Cost of goods sold 289,946 Sales revenue Equipment 1 alltortization schedule(s) describing the pattern of Interest over the lease term for the lessee and the lesson 5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 (the second lease payment and amortization), 6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2025 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1.200. Answer is not complete. Complete this question by entering your answers in the tabs below. Required I Required 2 Required 3 Required 3 Required 4 Required 4 Required 5 Required S Required 6 Required 6 lessee tessor lesse lessor lessen lessor Sessee Lessor Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee. (Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.) Lease Amortization Schedule Effective Decrease in Outstanding Dec. 31 Payments Interest Balance Balance 2021 2021 2022 2023 2024 0 0 0 Return Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 3 Required 4 Required 4 Required 5 Required 5 Required 6 Required 6 lessee lessor lessee lessor lessee lessor lessee lessor Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessor. (Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.) Lease Amortization Schedule Effective Decrease in Payments Interest Balance Outstanding Balance Dec 31 2021 2021 2022 2023 2024 2025 0 0 0 WESTES VOVE CLOUD SUU. Answer is not complete. Complete this question by entering your answers in the tabs below. Ret Required 2 Required] Required 3 Required 4 Required 4 Required 5 Required 5 Required 6 Required 6 Sessee sor Sesse essor lessed lessor Prepare appropriate entries for Western Saya on December 31, 2022 (the second lease payment and amortization). (if no is more for a transaction/event, select "No journal entry required in the first account field. Round your answers to General Journal Debit Credit Ve UHREM WHICULUMIWILIVUMI VYHECHIS returned to Rhone Metro and the actual residual value on that date is $1,200, Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 3 Required 4 Required 4 Required Required 5 Required 6 Required 6 lessee lessor lessee lessor lessee lessor lessee lessor Prepare all appropriate entries for Western Soya on December 31, 2022 (the second lease payment and amortization). (if no entry is required for a transaction/event, select "No journal entry required in the first account held.) No Date General Journal Debit Credit