On January 1, 2020, Bensen Company leased equipm pertains to this lease. The term of the non-cancelable lease is 6 years. At the end of the lease term, Flynn has for $1.000, while the expected resi value at the end of the lease is $5,000. 2. Equal rental payments are due on January 1 of each year, beginning in 2020. The fair value of the equipmen 10, and its cost is $120,000. The e raight-line basis. implicit rate of the lessor is unknown. Collectibility of lease payments by the lessor is probable. Both the lessor and the lessee's unting periods end on December 31. Click here to view factor tables. (For calculation purposes, use 5 decimo Your answer is correct. Discuss the nature of this lease to Bensen and Flynn. The nature of this lease for Bensen is a sales type " lease The nature of this lease for Flynn is a |finance ~ lease. eTextbook and Media List of Accounts * Your answer is incorrect. Calculate the amount of the annual rental payment. (Round answer to O decimal places, es. 5.275.) Annual rental payment 26317 eTextbook and Media Assistance Used List of Accounts Prepare all the necessary journal entries for Bensen for 2020. (Credit account titles are automatically indented when the am entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 1/20 150000 Cost of Goods Sold 120000 Sales Revenue 15000 Inventory 12000 (To record the lease) 1/20 26317 Lease Receivable (To record lease payment) 12/31/20 ~ Accumulated Depreciation-Capital Leases Interest Revenue e Textbook and Media List of Accounts Your answer is partially correct. Suppose the collectibility of the lease payments was not probable for Bensen. Prepare the necessary journal entry for the company in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit 1/1/20 Lease Receivable 26317 Loss on Capital Lease 26317 eTextbook and Media List of Accounts * Your answer is incorrect. Prepare all the necessary journal entries for Flynn for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answ Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit (To record the lease) (To record the lease payment) To record amortization of the right-of-use asset) (To record interest expense) eTextbook and Media List of Accounts * Your answer is incorrect. Prepare the effect on the journal entry for Flynn at lease commencement, assuming initial direct costs of $2.000 are incurred by Flynn to negotiate the lease. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts