Sunland Company, a machinery dealer, leased a machine to Carla Vista Corporation on January 1, 2025. The lease is for an 8-year period and requires equal annual payments of $29,928 at the beginning of each year. The first payment is received on January 1, 2025. Sunland had purchased the machine during 2024 for $150,000. Collectibility of lease payments by Sunland is probable. Sunland set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Sunland at the termination of the lease. Click here to view factor tables. (a) Your answer is correct. Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places e.g. 5,275.) Amount of the lease receivable $ 196997 Prepare all necessary journal entries for Sunland for 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation /25 Lease Receivable 25 25 Cost of Goods Sold Inventory Sales Revenue (To record the lease) Cash Lease Receivable (To record the first lease payment) 1/25 Lease Receivable Interest Revenue Debit 196,997 150,000 29,928 10,024 Credit 150,000 196,997 29,928 10,024 Suppose the collectibility of the lease payments was not probable for Sunland. Prepare the necessary journal entry for the company in 2025. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation 1/1/25 Debit Credit