Skysong Leasing Company signs an agreement on January 1, 2017, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $401,000. The fair value of the asset at January 1, 2017, is $401,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $22,050, none of which is guaranteed. 4. The agreement requires equal annual rental payments, beginning on January 1, 2017 5. Collectibility of the lease payments by Skysong is probable. Click here to view the factor table. [ Your answer is correct. Assuming the lessor desires a 8% rate of return on its investment, calculate the amount of the annual rental payment required. (For calculation purposes, use 5 decimal laces as displayed in the factor table provided and the final answer to 0 decimal places e.g.5,275. Amount of the annual rental payment 77,533 Your answer is partially correct. Try again. Prepare an amortization schedule that is suitable for the lessor for the lease term. (Round answers to 0 decimal places e.g5,275.) SKYSONG LEASING COMPANY (Lessor) Lease Annual Lease Payment Plus URV Interest on Lease Recovery of Lease Receivable Date Receivab Lease Receivable $401,000 ,533 387,105 77,53324,765 52,768 309,571 77,533 20,544 56,989 256,802 1/1/20 15,985 61,548 199,813 533 1/1/21 11,061 66,472 138,264 533 1/1/22 5,743 71,790 71,791 12/31/22 465203 8099 387104 Your answer is incorrect. Try again. Prepare all of the journal entries for the lessor for 2017 and 2018 to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor's annual accounting period ends on December 31, and it does not use reversing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit