The following facts pertain to a noncancelable lease agreement between Skysong Leasing Company and Concord Company, a lessee.

Inception date:May 1, 2017

Annual lease payment due at the beginning ofeach year, beginning with May 1, 2017 $20,253.44

Bargain-purchase option price at end of lease term $4,100

Lease term 5years

Economic life of leased equipment 10years

Lessors cost $64,000

Fair value of asset at May 1, 2017 $87,000

Lessors implicit rate 10%

Lessees incremental borrowing rate 10%

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.

1, Compute the amount of the lease receivable at the inception of the lease(Round present value factor calculations to 5 decimal places, e.g. 1.25124 and Round answers to 2 decimal places, e.g. 16.25.)

2,Prepare a lease amortization schedule for Skysong Leasing Company for the 5-year lease term. (Round answers to 2 decimal places, e.g. 16.25.)

3, 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 2017, 2018, and 2019. The lessors accounting period ends on December 31. Reversing entries are not used by Skysong. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 16.25.)