Problem 21A-7 a-c Pina 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 $447,622, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be $15,700. The hospital will pay rents of $58,500 at the beginning of each year. Pina incurred costs of $249,000 in manufacturing the machine and $14,700 in legal fees directly related to the signing of the lease. Pina has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 7%. Click here to view factor tables 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 O 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 LINK TO TEXT LINK TO TEXT Prepare a 10-year lease amortization schedule for Pina, the lessor. (Round answers to O decimal places e.g.5,275.) PINA INC. (Lessor) 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 automatica yind en te r en amount s entered. Do not ment 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.5,275.) No. Account Titles and Explanation Debit Credit 1. (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.) Click if you would like to Show Work for this question: Qpen Show Work Problem 21A-7 a-c Accounts Payable Accumulated Depreciation-Building Accumulated Depreciation-Leased Building Accumulated Depreciation-Capital Leases Accumulated Depreciation-Equipment Accumulated Depreciation-Leased Equipment Accumulated Depreciation-Leased Machinery Accumulated Depreciation-Machinery Advertising Expense Amortization Expense Airplanes Buildings Cash Cost of Goods Sold Deferred Gross Profit Deposit Liability Depreciation Expense Equipment Executory Costs Executory Costs Payable Gain on Disposal of Equipment Gain on Disposal of Plant Assets Gain on Lease Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Leased Asset Leased Buildings Leased Equipment Lease Expense Leased Land Lease Liability Lease Receivable Lease Revenue Legal Expense Loss on Capital Lease Machinery Maintenance and Repairs Expense Notes Payable Prepaid Lease Executory Costs Prepaid Legal Fees Property Tax Expense Property Tax Payable Rent Expense Rent Payable Rent Receivable Rent Revenue Revenue from Sale-Leaseback Right-of-Use Asset Salaries and Wages Expense Sales Revenue Selling Expenses Trucks Unearned Profit on Sale-Leaseback Unearned Lease Revenue Unearned Service Revenue