Sunland Leasing Company signs an agreement on January 1, 2025, to lease equipment to Carla Vista 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 $251,000. The fair value of the asset at January 1, 2025, is $251,000. 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 $25,490, none of which is guaranteed. 4. The agreement requires equal annual rental payments, beginning on January 1, 2025. 5. Collectibility of the lease payments by Sunland is probable. Click here to view factor tables. (a) Your answer is correct. Assuming the lessor desires an 8% rate of return on its investment, calculate the amount of the annual rental payment required. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and the final answer to O decimal places e.g. 5,275.) Amount of the annual rental payment eTextbook and Media List of Accounts 47056 Attameter unlimited Lease Payment Plus URV Interest on Lease Receivable 47056 i 47056 16316 Recovery of Lease Receivable 47056 LA Lease Receivable 251000 203944 30740 173204 47056 13856 33200 140004 47056 11200 35856 104148 47056 8332 38724 65424 47056 5234 25490 1888 41822 23602 23602 307826 56826 $ 251000 0 Question 13 of 14 < > 1.05/1.5 Prepare all of the journal entries for the lessor for 2025 and 2026 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. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation Debit Credit 1/1/25 12/30/25 (To record the lease) $ 4 de 26 (To record the receipt of lease payment) S Type & C 5 6 7 8 9 30 R T Y U O P [ EL F G H J K L C V B N M Olete beckspace 2 prt sc 1/1/26 1/1/26 12/31/26 List of Accounts P Sanch -P $ 4 % 5 A 60 10+ 49 & 8 9 0 R T Y U FLI G H J K L C V B N M alt P ? 1080 delete +backspace enter ort sc shift