PLEASE PAY ATTENTION TO THE FORMAT OF THE JOURNAL ENTRIES IT GOES 4 2 2 3 2

The following facts pertain to a non-cancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee. Commencement date May 1, 2020 Annual lease payment due at the beginning of each year, beginning with May 1, 2020 $20,471.94 Bargain purchase option price at end of lease term $4.000 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $65,000 Fair value of asset at May 1, 2020 $91,000 Lessor's implicit rate 8 % Lessee's incremental borrowing rate 8 % The collectibility of the lease payments by Mooney is probable. Click here to view factor tables. Your answer is correct. Compute the amount of the lease receivable at commencement of the lease. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answer to 2 decimal places, eg. 5,275.15.) Lease receivable at commencement $ 91000 Prepare a lease amortization schedule for Mooney for the 5-year lease term. (Round answers to 2 decimal places, eg. 5,275. MOONEY LEASING COMPANY (Lessor) Lease Amortization Schedule Annual Lease Payment Plus BPO Date Interest on Lease Receivable Recovery of Lease Receivable Lease 5/1/20 $ 0 $ 0 $ 0 $ 5/1/20 20471.94 O 20471.94 5/1/21 20471.94 5642.24 14829.70 5/1/22 20471.94 4455.87 16016.07 5/1/23 20471.94 3174.58 17297.36 5/1/24 20471.94 1790.79 18681.15 4/30/25 4000 296.30 3703.70 $ 106359.70 $ 15359.79 $ 91000 Mooney for the 5-year lease term. (Round answers to 2 decimal places, eg. 5,275.15.) MOONEY LEASING COMPANY (Lessor) Lease Amortization Schedule ent Interest on Lease Receivable Recovery of Lease Receivable Lease Receivable 0 $ 0 $ 0 $ 91000 94 20471.94 70528.06 L.94 5642.24 14829.70 55698.36 194 4455.87 16016.07 39682.29 1.94 3174.58 17297.36 22384.93 1.94 1790.79 18681.15 3703.78 000 296.30 3703.70 0 -9.70 $ 15359.79 $ 91000 Date Account Titles and Explanation Debit Cred 5/1/20 Lease Receivable 91000 Cost of Goods Sold 65000 Sales Revenue Inventory (To record the lease) 5/1/20 Cash 20471.94 Lease Receivable (To record lease payment) 5/1/20 3761.50 Interest Revenue