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On January 1,2017 Cheyenne Leasing Company leases computer hardware to Watson Company. The term of the noncancelable lease is 2 years, and payments are required

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On January 1,2017 Cheyenne Leasing Company leases computer hardware to Watson Company. The term of the noncancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Watson Company has the option to purchase the hardware for $9,000 upon termination of the lease. 2. The equipment has a cost and fair value of $93,000 to Cheyenne Leasing Company. The useful economic life is 2 years, with a salvage value of $9000. 3. Cheyenne Leasing Company desires to earn a return of 9% on its imvestment. 4. Collectibility of the payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet. to be incurred by the lessor. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Prepare the journal entries on the books of Cheyenne Leasing to reflect the payments received under the lease and to recognize income for the years 2017 and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places e.8. 5.275.)

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