The following facts pertain to a noncancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee. Inception date: May 1, 2014 Annual lease payment due at the beginning of each year, beginning with May 1, 2014 $18,031.37 Bargain-purchase option price at end of lease term $4,090.00 Lease term 5 years Economic life of leased equipment 10 years Lessors cost $61,400.00 Fair value of asset at May 1, 2014 $76,400.00 Lessors implicit rate 11 % Lessees incremental borrowing rate 11 % The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs.

Compute the amount of the lease receivable at the inception of the lease.

Prepare a lease amortization schedule for Mooney Leasing Company for the 5-year lease term. (round to 2 decimal spaces)

Date	Annual Lease Payment Plus BPO	Interest on Lease Receivable	Recovery of Lease Receivable	Lease Receivable
5/1/14
5/1/14
5/1/15
5/1/16
5/1/17
5/1/18
4/30/19

Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2014, 2015, and 2016. The lessor's accounting period ends on December 31, Reversing entries are not used by Mooney.

Date	Account Titles and Explanation	Debit	Credit
5/1/14
	(To record the lease)
	To record the lease payment
12/31/14
5/1/15
12/31/15
5/1/16
12/31/16

TABLE 6-2 PRESENT VALUE OF 12% 92593 86957 75614 91743 79719 .77218 63552 56743 49718 63017 58349 54027 50025 .56447 .51316 48166 .50187 32197 28748 22917 42241 35218 42888 39711 31728 21494 31863 32618 23199 31524 27454 21763 19785 29189 27027 25025 23171 10687 14564 11611 17843 06110 19866 10067 07379 04017 12641 11597 08170 07361 08831 05974 04187 03738 01997 01737 01510 04849 .05731 06915 05210 04736 03194 02878 07889 .03914 06763 01894 00751 02104 01896 01708 01538 01691 01510 01348 01204 01075 05799 02674 02430 02210 00494 04971