Prepare all of the journal entries for the lessor for 2020 and 2021 to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessors annual accounting period ends on December 31, and it does not use reversing entries. (Credit account titles are 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
1/1/2012/31/201/1/2112/31/21	enter an account title To record the lease on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record the lease on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record the lease on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record the lease on January 1 2017	enter a debit amount	enter a credit amount
	(To record the lease)
1/1/2012/31/201/1/2112/31/21	enter an account title To record the receipt of lease payment on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record the receipt of lease payment on January 1 2017	enter a debit amount	enter a credit amount
	(To record the receipt of lease payment)
1/1/2012/31/201/1/2112/31/21	enter an account title for the journal entry on December 31 2017	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31 2017	enter a debit amount	enter a credit amount
1/1/2012/31/201/1/2112/31/21	enter an account title for the journal entry on January 1 2018	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1 2018	enter a debit amount	enter a credit amount
1/1/2012/31/201/1/2112/31/21	enter an account title for the journal entry on December 31 2017	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31 2017	enter a debit amount	enter a credit amount

Statement showing the calculation of annual rental payment

No.	Particulars	Amount ($)	Explanation
I.	Fair value of leased asset to lessor	451000	Given in question
II.	Present value of unguaranteed residual value	14445	Residual value of leased asset * Present value of $1 at 9% for 6 periods = $24225 * 0.59627 = $14445
III.	Amount to be recovered through lease payments	436555	I - II
	Annual rental payment	89281	Amount to be recovered through lease payments / Present value of an annuity due of $1 at 9% for 6 periods = $436555 / 4.88965 = $89281