The following facts pertain to a non-cancelable lease agreement between Alschuler Leasing Company and McKee Electronics, a lessee, for a computer system.

Commencement date		October 1, 2020
Lease term		6	years
Economic life of leased equipment		6	years
Fair value of asset at October 1, 2020		$313,043
Book value of asset at October 1, 2020		$280,000
Residual value at end of lease term		0
Lessors implicit rate		8	%
Lessees incremental borrowing rate		8	%
Annual lease payment due at the beginning of
each year, beginning with October 1, 2020		$62,700

The collectibility of the lease payments is probable by the lessor. The asset will revert to the lessor at the end of the lease term. The straight-line depreciation method is used for all equipment. The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for properly as a finance lease by the lessee and as a sales-type lease by the lessor.

Date		Lease Payment/Receipt		Interest (8%) on Unpaid Liability/Receivable		Reduction of Lease Liability/Receivable		Balance of Lease Liability/Receivable
10/01/20								$313,043
10/01/20		$62,700				$62,700		250,343
10/01/21		62,700		$20,027		42,673		207,670
10/01/22		62,700		16,614		46,086		161,584
10/01/23		62,700		12,927		49,773		111,811
10/01/24		62,700		8,945		53,755		58,056
10/01/25		62,700		4,644		58,056		0
		$376,200		$63,157		$313,043

(a)

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.

Assuming the lessees accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to 0 decimal places e.g. 58,971.) (1) What items and amounts will appear on the lessees income statement for the year ending September 30, 2021?

$
$

(2) What items and amounts will appear on the lessees balance sheet at September 30, 2021?

Balance Sheet (Partial) September 30, 2021For the Year Ended September 30, 2021For the Quarter Ended September 30, 2021
Current Liabilities:
			$
Long-term Liabilities:
			$
Non-current Assets:
			$

(3) What items and amounts will appear on the lessees income statement for the year ending September 30, 2022?

$
$

(4) What items and amounts will appear on the lessees balance sheet at September 30, 2022?

Balance Sheet (Partial) September 30, 2022For the Year Ended September 30, 2022For the Quarter Ended September 30, 2022
Current Liabilities:
			$
Long-term Liabilities:
			$
Non-current Assets:
			$