Pharoah Corp. is a manufacturer of truck trailers. On January 1, 2021, Pharoah Corp.leases 11 trailers to Sheridan Company under a 6-year noncancelable lease agreement. The following information about the lease and the trailers is provided: 1. Equal annual payments that are due on January 1 each year provide Pharoah Corp. with an 8% return on net investment 2. Titles to the trailers pass to Sheridan at the end of the lease. 3. The fair value of each trailer is $52.400. The cost of each trailer to Pharoah Corp. is $45,100. Each trailer has an expected useful life of nine years. 4. Collectibility of the lease payments is probable. What type of lease is this for the lessor? Calculate the annual lease payment. (Round present value foctor calculations to 5 decimal places, eg. 1.25124 and the final answer to decimal places eg. 5,275) Annual lease payment $ Prepare a lease amortization schedule for Pharoah Corp. for the first three years. (Round answers to decimal places eg 5,275.) Pharoah Corp. Lease Amortization Schedule (Lessor) Interest on Lease Lease Receivable Receivable Recovery Annual Lease Rental Lease Receivable Date 1/1/21 1/1/21 $ 1/1/22 1/1/23 Prepare the journal entries for the lessor for 2021 to record the lease agreement, the receipt of the lease rentals, and the recognition of revenue. (Credit account titles a automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record receipt of the first lease payments)