Oriole Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $87,000. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Oriole expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31, 2020.

PLEASE DOUBLE CHECK AND MAKE SURE YOUR ENTRIES ARE CORRECT. I'VE HAD TO WASTE TWO QUESTIONS ON THIS ALREADY.

Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 dec round final answers to O decimal places e g. 5,275.) Date Rent Receipt/ Payment Interest Revenue/ Expense Reduction of Principal Receivable/ Liability 1/1/20 $ 12/31/20 12/31/21 12/31/22 e Textbook and Media List of Accounts Prepare the journal entry at commencement of the lease for Oriole. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1/1/20 e Textbook and Media Prepare the journal entry at commencement of the lease for Sharrer. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Date Account Titles and Explanation Debit Credit 1/1/20 e Textbook and Media List of Accounts Prepare the journal entry at commencement of the lease for Sharrer, assuming (1) Sharrer does not know Oriole's implicit rate (Sharrer's incremental borrowing ra $9,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the places eg. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/20 e Textbook and Media List of Accounts Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 dec round final answers to O decimal places e g. 5,275.) Date Rent Receipt/ Payment Interest Revenue/ Expense Reduction of Principal Receivable/ Liability 1/1/20 $ 12/31/20 12/31/21 12/31/22 e Textbook and Media List of Accounts Prepare the journal entry at commencement of the lease for Oriole. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1/1/20 e Textbook and Media Prepare the journal entry at commencement of the lease for Sharrer. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Date Account Titles and Explanation Debit Credit 1/1/20 e Textbook and Media List of Accounts Prepare the journal entry at commencement of the lease for Sharrer, assuming (1) Sharrer does not know Oriole's implicit rate (Sharrer's incremental borrowing ra $9,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the places eg. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/20 e Textbook and Media List of Accounts