signment CALC Prepare the amortization schedules Sunland will use over the lease term. SUNLAND COMPANY Lease Amortization Schedule Annuity-Due Basis Interest Annual Payment Reduction of Date on Liability Lease Liability Lease Liability 1/1/20 1/1/20 1/1/21 1/1/22 Lease Expense Schedule (9) Amortization of (A) (B) Right-of-Use Asset Straight-Line Interest on (and Liability) Carrying Value of Date Expense Lease Liability (A-B) Right-of Use Asset 1/1/20 12/31/20 12/31/21 12/31/22 lacy Policy | 6 2010-2020 John Wiley & Sons. Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc.S WileyPLUS: ByWiley PLUS Kieso, Intermediate Accounting, 17e ACCT INTERMEDI actice Assignment Gradebook ORION Downloadable aTextbook inment CALCULATOR TIME SCREEN Problem 21-16 Marigold Corporation entered Into a lease agreement on January 1, 2020, to provide Sunland Company with a piece of machinery. The terms of the lease agreement were as follow, The leave is to be for 3 years with rental payments of #1 1 580 to be made at the beginning of each Year The machinery has a feir value of $58,090, . book value of $40,000, and an economic ife of 8 years. 1. At the and of the lease term, both parties expect the machinery to have a residual value of $30,060, none of which is guaranteed 4. The lease does not transfer generahip at the end of the lease term, does not have a bargain purchase option, and the asset is not of a specialized nature. The implicit rate is It, which is known by Danking, Collectbility of the popenets is probable. Click here to view factor tables. Evaluate the criteria for clase fication of the lease, and dese the nature of the lease. For the lesson, It is a w. and for the lesser It is a NEWEMILY Prepare the amortization schedules Sunland will win over the learn term, SUNLAND COMPANY Lease Amortization Schedule Annuity Due Bolt Interest Reduction of Prack Pokey | 0.2303 2030 kin WELL. Since, Inc. All Fights Restreed, A Division of John Wier N.Son. Inc. have So search Owileyplus.com/edugenstudent/mainfrumi S Kieso, Intermediate Accounting, 17c ACCT INTERMEDIATE ACCO Assignment Gradebook ORION Downloadable . Textbook Prepare the 2020 journal entries for Sumkind. (credit account titles are autoor Tically indented when the amount is catered as bot Indent manually Ins entry In required sober 7 for the tocount fries and enter o for the amounts. Rayne present value factor calculations to 8 dromal places jog. 1 25124 and the minal power to o decid peace. 58 971 Date . Account Titles and Explanation Credit Lease Unbilty [To record lange Intense Linbinty Cash [To record find lease paymenth Dec 31 Lasts Expanse HOW LIST OF ACCOUNTSIS ACCT INTERME Kieso, Intermediate Accounting, 17e artice Gradehook ORION Downloadable eTextbook CALCULATOR TULL SCREEN PRINTER Prepare the 2020 journal entries for Marigold. ( Credit account titles are automatically indented when the amount is entered. Do not ladent manually. If no entry is requir foe the account titles and enter O for the amounts. Round present value factor calculations to S decimal places, op. 1.23134 and the final answer to o dociaal place Date Account Tithen and Explanation Credit Unmarried Lease Revenue To record loan payments Dec. 31 Unearned Lease Revenue 0 34 Depreciation Expanse Accumulated Depreciation To record deprodation! Suppose the lasso mare only for one year instead of 3 years, with just one beats payment at the beginning of the lease term. Prepare amy journal entries Sunland would need, assuming that-bern hoose options ( Credit account titties are automatically indented when the amount is entered. Do not Dodent manually. If no entry is required, select "No Entry hitt and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the Minal andever to d decimal places e.g. 58, 971.)