Problem 21A-10 a 2-c Buffalo Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to Carla Airlines for a period of 10 years. The normal selling price of the equipment is $294,530, and its unguaranteed residual value at the end of the lease term is estimated to be $21,600. Carla will pay annual payments of $40,800 at the beginning of each year. Buffalo incurred costs of $168,000 in manufacturing the equipment and $4,400 in sales commissions in closing the lease. Buffalo has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 9%. Carla Airlines has an incremental borrowing rate of 9%. Click here to view the factor table. x Your answer is incorrect. Try again. Compute the amount of the initial lease liability. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971.) The amount of the initial lease liability SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare a 10-year lease amortization schedule. (Round answers to 0 decimal places e.g. 58,970.) CARLA AIRLINES (Lessee) Lease Amortization Schedule (Annuity-due basis and URV), Interest on Reduction of Lease Annual Lease Payment Lease Liability Liability Beginning of Year Lease Liability IL TO Initial PV 294,530 40,800 40,800 40,800 40,800 40,800 40,800 40,800 40,800 0,800 20,400 387600 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare all of the lessee's journal entries for the first year. Assume straight-line depreciation. (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 o for the amounts. Round answers to O decimal places e.g. 58,970.) Debit Credit Account Titles and Explanation x Lease Receivable Cost of Goods Sold (To record the lease.) Cash Account Titles and Explanation Debit Credit Lease Receivable Cost of Goods Sold O (To record the lease.) Cash Interest Receivable (To record the first rental payment.) Interest Receivable Interest Revenue (To record accrual of annual interest on lease obligation.) || Depreciation Expense Cash (To record depreciation expense for first year.)