Show Attempt History Current Attempt in Progress Shamrock Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Pharoah Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Pharoah has the option to purchase the equipment for $23,000 upon termination of the lease. It is not reasonably certain that Pharoah will exercise this option. 2. The equipment has a cost of $260,000 and fair value of $290,000 to Shamrock Leasing. The useful economic life is 2 years, with a residual value of $23,000. 3. Shamrock Leasing desires to earn a return of 5% on its investment. 4. Collectibility of the payments by Shamrock Leasing is probable. Click here to view factor tables. - Your answer is partially correct. Prepare the journal entries on the books of Shamrock Leasing to reflect the payments received under the lease and to recognize income for the years 2020 and 2021. (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 decimal places s. 5,275) Debit Credit Date Account Titles and Explanation 290000 1/1/20 - Lease Receivable Prepare the journal entries on the books of Shamrock Leasing to reflect the payments received under the lease and to recognize income for the years 2020 and 2021. (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 decimal places es. 5.275.) Date Account Titles and Explanation Debit Credit 1/1/20 Lease Receivable 290000 Cost of Goods Sold 239138 Sales Revenue 269138 Inventory 260000 12/31/20 Cash 144744 Lease Receivable 130244 FEE DE Interest Revenue 14500 144744 12/31/21 Lease Receivable 136756 Inventory 1 7988 Interest Revenue e Textbook and Media List of Accounts X Your answer is incorrect. Assuming that Pharoah exercises its option to purchase the equipment on December 31, 2021, prepare the journal entry to record the sale on Shamrock Leasing's books. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 12/31/21 e Textbook and Media List of Accounts Attempts: 1 of 3 used Submit Answer Save for Later Your grade has been recorded in the Gradebook Sat, Apr 25, 2020, 1:22:49 AM (Asia/Makassar -08:00)