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Terms of a lease agreement and related facts were: a. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred

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Terms of a lease agreement and related facts were: a. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $4,332 b. The retail cash selling price of the leased asset was $525,000. Its useful life was three years with no residual value The lease term is three years and the lessor paid $525,000 to acquire the asset. d. Annual lease payments at the beginning of each year were $195.000 e Lessor's implicit rate when calculating annual rental payments was 15% (FV of $1. PV of $1. FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1 2018 2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. 3. Record any entry(s) necessary at December 31, 2018, the fiscal year-end. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2018. (Round you intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list View journal entry worksheet Credit Debit 525,000 525,000 Record the lease. Record the payment of initial direct costs. 3 Record the cash received. a Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $4,332 b. The retail cash selling price of the leased asset was $525.000. Its useful life was three years with no residual value c. The lease term is three years and the lessor paid $525.000 to acquire the asset d. Annual lease payments at the beginning of each year were $195,000 e. Lessor's implicit rate when calculating annual rental payments was 15% (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Required: 1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2018. 2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. 3. Record any entry(s) necessary at December 31, 2018, the fiscal year-end. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. Effective rate of interest Terms of a lease agreement and related facts were: a Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by lessor were $4,332 b. The retail cash selling price of the leased asset was $525.000. Its useful life was three years with no residual value c. The lease term is three years and the lessor paid $525,000 to acquire the asset. d. Annual lease payments at the beginning of each year were $195,000 e Lessor's implicit rate when calculating annual rental payments was 15% (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided Required: 1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2018 2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs 3. Record any entry(s) necessary at December 31, 2018, the fiscal year-end. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record any entry() necessary at December 31, 2018, the fiscal year-end. (Round your intermediate and final answers to the near whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required in the first account bold View transaction list View journal entry worksheet Debit Credit Record the interest receivable. TABLE 6 Present Value of an Annuity Due of $1 PVAD-1-+0Fx61 +5) ml 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 1.99010 1.98522 1.98039 1.97561 1.97087 196618 1.96154 3 2.97040 2.95588 2.94156 2.92742 2.91347299960 288600 4 3.94099 3.91220 3.88388 3.85602 3.82861 3.80164 3.77509 5 4.90197 4.85438 4.80773 4.76197 4.71710 4.67308 4.62990 6 5.85343 5.78264 5.71346 5.64583 5.5797f5 5.51505 5.45182 7 6.79548 6.69719 6.60143 6.50813 6.41719 6.32855 6.24214 8 7.72819 7.50821 7.47199 7.34939 7.23028 7.114547.00205 0 8.65168 8.48503 8.32548 8.17014 8.01960 7.87396 7.73274 109 56602 9.36052 9.16224 8.97087878611 8.60760 8.43533 4.5% 1.00000 1.95694 2.87267 3.74896 4.58753 5.0% 5.5% 1.00000 1.00000 1.952381.94787 2.85941 2.84632 3.72325 3.69793 4.54595 4.50515 6.0% 7.0% 1.00000 1.00000 1.94340 1.93458 2.83339 2.80802 3.67301 3.62432 4.46511 4.38721 0.0% 0.0% 1.00000 1.00000 1.92593 1.91743 2.78326 2.75911 3.57710 3.53129 4.312134.23972 0.0% 11.0% 12.0% 20 1.00000 1.00000 1.000001 1.90909 1.90090 1.892861 2.73554 2.71252 2.600052 3.48685 3.44371 3.40183 3 4.16987 4.10245 4.03735 3 5.38998 6.15787 6.89270 7.59589 8 26879 5.32948 6.07569 6.78637 7.46321 8.10782 5.27028 5.99553 6.68297 7.33457 7.95220 5.21236 5.100204.99271 4.88965 4.79079 4.69590 4.604783 5.91732 5.76654 5.62288 5.48592 5.35526 5.23054 5.11141 4 6.58238 6.38920 6.20637 6.03295 5.86842 5.71220 5.563764 7.20979 697130 6.74664 6.53482 6,33493 6.14612 5.967644 7.80169751523 7.24689 6995256.75902 6.53705 6.32925 5. 11 10.47130 10.22218 9.98259 0.75206 9.53020 9.31661 9.11090 8.91272 8.72173 8.53763 8.36009 12 11.36763 11.07112 10.78665 10.51421 10.25262 10.00155 9.76048 0.528929.30641 0.09254 8.88687 13 12.25508 11.90751 11.57534 11.25776 10.95400 10.66333 10.38507 10.11858 9.86325 9.61852 9.38384 14 13.13374 12.73153 12.34837 11.08318 11.63496 11.30274 10.98565 10.68285 10.39357 10.11708 9.85268 15 14.00370 13.54338 13.10625 12.69091 12.29607 11.92052 11.56312 11.22283 10.89864 10.58965 10.29498 8.023587.71008 8.49867 8.13896 8.94269 8.53608 9.35765 8.90378 0.74547 9.24424 7.41766 7.14457 6.88923 6.65022 5. 7.805197.49506 7.20652 6.93770 5 8.160737.81369 7.49236 7.19437 5. 8.48600 8.10336 7.74987 7.42355 5 8.78615 8.36660 7.98187 7.62817 5. 16 14.86505 14.34323 13.84926 13.38138 12.93794 12.51741 12.11839 11.73955 11.37966 11.03758 10.71225 10.10791 0.55948 9.06060 8.60608 8.19087 7.81086 5.. 17 15.71787 15.13126 14.57771 14.05500 13.56110 13.09412 12.65230 12.23402 11.83777 11.46216 11.10500 10.44665 9.85137 9.31256 8.82371 8.37916 7.97399 S. 18 16.56225 15.90765 15.29187 14.71220 14.16612 13.65132 13.16567 12.70719 12.27407 11.86461 11.47726 10.76322 10.12164 9.54363 0.02155 8.54879 8.11963 5. 19 17.39827 16.67256 15.99203 15.35336 14.75351 14.18968 13.65930 13.15999 12.68959 12 24607 11.82760 11.05909 10.37189 9.75563 9.20141 8.70162 8.24967 5.8 20 18.22601 17.42617 16.67846 15.07889 15.32380 14.70984 14.13394 13.59329 13.08532 12 60765 12.15812 11.33560 10.60360 9.95011 9.36492 8.83929 8.36578 5. 21 19.04555 18.16864 17.35143 16.58916 15.87747 15.21240 14.59033 14.00794 13.46221 12.95038 12.46992 11.59401 10.81815 10.12855 9.51356 8.96333 8.46944 5.5 25 22.24339 21.03041 19.01393 18.88499 17.93554 17.05837 16.24696 15.49548 14.79864 14.15170 13.55036 12.46933 11.52876 10.70661 9.99474 9.34814 8.784325 30 26.06579 24.37608 22.84438 21.45355 20.18845 19.03577 17.98371 17.02189 16.14107 15.33310 14.59072 13.27767 12.15841 11.19828 10.36961 9.65011 9.02181 5.9 An 13 LEGOMEO 9 27 27 12 20 AA 19 22016 1 0 1691 16 0007 14 24403 12 AASA 11.722 10 760 027 021301 5. Terms of a lease agreement and related facts were: a. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $4,332 b. The retail cash selling price of the leased asset was $525,000. Its useful life was three years with no residual value The lease term is three years and the lessor paid $525,000 to acquire the asset. d. Annual lease payments at the beginning of each year were $195.000 e Lessor's implicit rate when calculating annual rental payments was 15% (FV of $1. PV of $1. FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1 2018 2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. 3. Record any entry(s) necessary at December 31, 2018, the fiscal year-end. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2018. (Round you intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list View journal entry worksheet Credit Debit 525,000 525,000 Record the lease. Record the payment of initial direct costs. 3 Record the cash received. a Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $4,332 b. The retail cash selling price of the leased asset was $525.000. Its useful life was three years with no residual value c. The lease term is three years and the lessor paid $525.000 to acquire the asset d. Annual lease payments at the beginning of each year were $195,000 e. Lessor's implicit rate when calculating annual rental payments was 15% (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Required: 1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2018. 2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. 3. Record any entry(s) necessary at December 31, 2018, the fiscal year-end. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs. Effective rate of interest Terms of a lease agreement and related facts were: a Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by lessor were $4,332 b. The retail cash selling price of the leased asset was $525.000. Its useful life was three years with no residual value c. The lease term is three years and the lessor paid $525,000 to acquire the asset. d. Annual lease payments at the beginning of each year were $195,000 e Lessor's implicit rate when calculating annual rental payments was 15% (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided Required: 1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2018 2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs 3. Record any entry(s) necessary at December 31, 2018, the fiscal year-end. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record any entry() necessary at December 31, 2018, the fiscal year-end. (Round your intermediate and final answers to the near whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required in the first account bold View transaction list View journal entry worksheet Debit Credit Record the interest receivable. TABLE 6 Present Value of an Annuity Due of $1 PVAD-1-+0Fx61 +5) ml 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 1.99010 1.98522 1.98039 1.97561 1.97087 196618 1.96154 3 2.97040 2.95588 2.94156 2.92742 2.91347299960 288600 4 3.94099 3.91220 3.88388 3.85602 3.82861 3.80164 3.77509 5 4.90197 4.85438 4.80773 4.76197 4.71710 4.67308 4.62990 6 5.85343 5.78264 5.71346 5.64583 5.5797f5 5.51505 5.45182 7 6.79548 6.69719 6.60143 6.50813 6.41719 6.32855 6.24214 8 7.72819 7.50821 7.47199 7.34939 7.23028 7.114547.00205 0 8.65168 8.48503 8.32548 8.17014 8.01960 7.87396 7.73274 109 56602 9.36052 9.16224 8.97087878611 8.60760 8.43533 4.5% 1.00000 1.95694 2.87267 3.74896 4.58753 5.0% 5.5% 1.00000 1.00000 1.952381.94787 2.85941 2.84632 3.72325 3.69793 4.54595 4.50515 6.0% 7.0% 1.00000 1.00000 1.94340 1.93458 2.83339 2.80802 3.67301 3.62432 4.46511 4.38721 0.0% 0.0% 1.00000 1.00000 1.92593 1.91743 2.78326 2.75911 3.57710 3.53129 4.312134.23972 0.0% 11.0% 12.0% 20 1.00000 1.00000 1.000001 1.90909 1.90090 1.892861 2.73554 2.71252 2.600052 3.48685 3.44371 3.40183 3 4.16987 4.10245 4.03735 3 5.38998 6.15787 6.89270 7.59589 8 26879 5.32948 6.07569 6.78637 7.46321 8.10782 5.27028 5.99553 6.68297 7.33457 7.95220 5.21236 5.100204.99271 4.88965 4.79079 4.69590 4.604783 5.91732 5.76654 5.62288 5.48592 5.35526 5.23054 5.11141 4 6.58238 6.38920 6.20637 6.03295 5.86842 5.71220 5.563764 7.20979 697130 6.74664 6.53482 6,33493 6.14612 5.967644 7.80169751523 7.24689 6995256.75902 6.53705 6.32925 5. 11 10.47130 10.22218 9.98259 0.75206 9.53020 9.31661 9.11090 8.91272 8.72173 8.53763 8.36009 12 11.36763 11.07112 10.78665 10.51421 10.25262 10.00155 9.76048 0.528929.30641 0.09254 8.88687 13 12.25508 11.90751 11.57534 11.25776 10.95400 10.66333 10.38507 10.11858 9.86325 9.61852 9.38384 14 13.13374 12.73153 12.34837 11.08318 11.63496 11.30274 10.98565 10.68285 10.39357 10.11708 9.85268 15 14.00370 13.54338 13.10625 12.69091 12.29607 11.92052 11.56312 11.22283 10.89864 10.58965 10.29498 8.023587.71008 8.49867 8.13896 8.94269 8.53608 9.35765 8.90378 0.74547 9.24424 7.41766 7.14457 6.88923 6.65022 5. 7.805197.49506 7.20652 6.93770 5 8.160737.81369 7.49236 7.19437 5. 8.48600 8.10336 7.74987 7.42355 5 8.78615 8.36660 7.98187 7.62817 5. 16 14.86505 14.34323 13.84926 13.38138 12.93794 12.51741 12.11839 11.73955 11.37966 11.03758 10.71225 10.10791 0.55948 9.06060 8.60608 8.19087 7.81086 5.. 17 15.71787 15.13126 14.57771 14.05500 13.56110 13.09412 12.65230 12.23402 11.83777 11.46216 11.10500 10.44665 9.85137 9.31256 8.82371 8.37916 7.97399 S. 18 16.56225 15.90765 15.29187 14.71220 14.16612 13.65132 13.16567 12.70719 12.27407 11.86461 11.47726 10.76322 10.12164 9.54363 0.02155 8.54879 8.11963 5. 19 17.39827 16.67256 15.99203 15.35336 14.75351 14.18968 13.65930 13.15999 12.68959 12 24607 11.82760 11.05909 10.37189 9.75563 9.20141 8.70162 8.24967 5.8 20 18.22601 17.42617 16.67846 15.07889 15.32380 14.70984 14.13394 13.59329 13.08532 12 60765 12.15812 11.33560 10.60360 9.95011 9.36492 8.83929 8.36578 5. 21 19.04555 18.16864 17.35143 16.58916 15.87747 15.21240 14.59033 14.00794 13.46221 12.95038 12.46992 11.59401 10.81815 10.12855 9.51356 8.96333 8.46944 5.5 25 22.24339 21.03041 19.01393 18.88499 17.93554 17.05837 16.24696 15.49548 14.79864 14.15170 13.55036 12.46933 11.52876 10.70661 9.99474 9.34814 8.784325 30 26.06579 24.37608 22.84438 21.45355 20.18845 19.03577 17.98371 17.02189 16.14107 15.33310 14.59072 13.27767 12.15841 11.19828 10.36961 9.65011 9.02181 5.9 An 13 LEGOMEO 9 27 27 12 20 AA 19 22016 1 0 1691 16 0007 14 24403 12 AASA 11.722 10 760 027 021301 5

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