Problem 21A-7 a-c Kingbird Inc. manufactures an X ray machine with an estimated life of 12 years and leases it to Chambers Medical Center for a period of 10 years. The normal selling price of the machine is $502,471, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be $15,500. The hospital will pay rents of $60,800 at the beginning of each year. Kingbird incurred costs of $242,000 in 5% manufacturing the machine and $14,700 in legal fees directly related to the signing of the lease. Kingbird has determined that the collectibility of the lease payments is probable and that the implicit interest rate is Compute the amount of each of the following items. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places, e.g. 5,275.) (1) Lease receivable at commencement of the lease (2)Sales price (3) Cost of sales SHOW LIST OF ACCOUNTS Lease Amortization Schedule (Annuity due basis, guaranteed residual value) Interest on Lease Receivable Beginning Annual Lease Payment Plus Residual Value Recovery of Lease Receivable Lease Receivable of Year Initial PV 2 :3 4 6 7 8 10 End of 10 Prepare all of the lessor's journal entries for the first year.(Credit account titles are automatically indented when amount is entered. Do not indent manually. II no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places e.g. 5,275) No. Account Titles and Explanation 1. Debit Credit (To record the lease.) (To record the incurrence of initial direct costs relating to the lease.) 2. (To record receipt of the first lease payment.) 3. (To record interest earned during the first year of the lease.)