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Problem 21A-9 a 2-c Concord Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for
Problem 21A-9 a 2-c Concord Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is $262,268, and its unguaranteed residual value at the end of the lease term is estimated to be $21,400. National will pay annual payments of $36,200 at the beginning of each year. Concord incurred costs of $177,800 in manufacturing the equipment and $4,400 in sales commissions in closing the lease. Concord has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 9%. 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 0 decimal places, e.g. 5,275.) (1) Lease receivable (2) Sales price (3) Cost of sales H Prepare a 10-year lease amortization schedule for Concord, the lessor. (Round answers to 0 decimal places e.g. 5,275.) CONCORD COMPANY (Lessor) Lease Amortization Schedule Annuity Due Basis, Unguaranteed Residual Value Beginning Annual Lease Payment Interest on Lease Receivable of Year Plus Residual Value Lease Receivable Recovery Lease Receivable Initial PV End of 10 Prepare all of the lessor's journal entries for the first year. (Credit account titles are automatically in manually. If no entry is required, select "No Entry" for the account titles and enter o for the a 5,275.) Account Titles and Explanation Debit Credit (To record the sale and the cost of goods sold in the lease transaction.) (To record payment of the initial direct costs relating to the lease.) (To record receipt of the first lease payment.) Torogord interactoarnod during the firctor of the loano
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