SandhillLeasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000and fair value of $89,500. Under the3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a3-year useful life and no residual value. The lease was signed on January 1, 2020.Sandhillexpects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31, 2020.

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An amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved.(For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places e.g. 5,275.)

Sandhill Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $89,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Sandhill expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31,2020. Click here to view factor tables. Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round nal answers to 0 decimal places as. 5,275.) Date Rent Receipt/ Payment Interest Revenue/ Expense Reduction of Principal Receivable/ Liability 1/1/20 $ $ $ $ 12/31/20 12/31/21 12/31/22 eTextbook and Media List of Accounts Prepare the journal entry at commencement of the lease for Sandhill. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1/1/20 e Textbook and Media List of AccountsPrepare thejournal entry at commencement of the lease for Sharrer. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 1/1/20 eTextbook and Media List of Accounts Prepare the journal entry at commencement of the lease for Sharrer, assuming (1) Sharrer does not know Sandhill's implicit rate (Sharrer's incremental borrowing rate is 9%), and (2) Sharrer incurs initial directs costs of $9,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/20 e Textbook and Media List of Accounts1. Future Value of 1 Table. Contains the amounts to which 1 will accumulate if deposited now at a specied rate and left for a specied number of periods (Table 6.1). TABLE 6.1 Future Value of 1 (Future Value of a Single Sum) FVFN = (1 + i)" (n) Periods 2% 21/296 3% 4% 5% 6% 1 1.02000 1.02500 1.03000 1.04000 1.05000 1.06000 2 1.04040 1.05063 1.06090 1.08160 1.10250 1.12360 3 1.06121 1.07689 1.09273 1.12486 1.15763 1.19102 4 1.08243 1.10381 1.12551 1.16986 1.21551 1.26248 5 1.10408 1.13141 1.15927 1.21665 1.27628 1.33823 6 1.12616 1.15969 1.19405 1.26532 1.34010 1.41852 7 1.14869 1.18869 1.22987 1.31593 1.40710 1.50363 8 1.17166 1.21840 1.26677 1.36857 1.47746 1.59385 9 1.19509 1.24886 1.30477 1.42331 1.55133 1.68948 10 1.21899 1.28008 1.34392 1.48024 1.62889 1.79085 11 1.24337 1.31209 1.38423 1.53945 1.71034 1.89830 12 1.26824 1.34489 1.42576 1.60103 1.79586 2.01220 13 1.29361 1.37851 1.46853 1.66507 1.88565 2.13293 14 1.31948 1.41297 1.51259 1.73168 1.97993 2.26090 15 1.34587 1.44830 1.55797 1.80094 2.07893 2.39656 16 1.37279 1.48451 1.60471 1.87298 2.18287 2.54035 17 1.40024 1.52162 1.65285 1.94790 2.29202 2.69277 18 1.42825 1.55966 1.70243 2.02582 2.40662 2.85434 19 1.45681 1.59865 1.75351 2.10685 2.52695 3.02560 20 1.48595 1.63862 1.80611 2.19112 2.65330 3.20714 21 1.51567 1.67958 1.86029 2.27877 2.78596 3.39956 1.91610 2.36992 2.92526 3.60354 1.72157 7111111111 9 2.46472 3.07152 3.81975 :711111117111 11; 11:1111111 :111112"; 1 21171-12171121 m 1 1127171 :'H'