Quiz 3: Earning X Youre annoyin X Google Docs X Course Hero X Homework He X Homework He X Homework He X Homework He X G Heavy Co. leas X + X -> C & https://rutgers.instructure.com/courses/117396/assignments/1195185 . .. 01:21:12 RUTGERS Time Remaining Return Next 9 2/ 15 2 3 points 898 Heavy Co. leased equipment to Build Co. on July 1, 2019. At lease commencement, Heavy recorded the net investment in the lease for this sales-type (finance) lease at $135,000, the present value of the lease payments. The discount rate used was 7.5%. Heavy had purchased the equipment for $110,000. The first of eight annual lease payments of $20,000 was paid at lease commencement on July 1, 2019. When Build Co. makes its second payment of $20,000 on July 1, 2020, what journal entries should Heavy Co. record? (Check all that apply.) V Cr. Net investment in the lease - sales-type -- $9,875 Cr. Lease revenue -- $20,000 O Cr. Net investment in the lease - sales-type -- $11,375 O Dr. Amortization expense -- $9,875 Dr. Cash -- 20,000 O Dr. Amortization expense -- $11,375 V Cr. Interest revenue -- $10,125 O Cr. Interest revenue -- $8,625 Next Type here to search O 10:29 PM 5/9/2021