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The following facts pertain to a non-cancelable lease agreement between Larkspur Leasing Company and Crane Company, a lessee. May 1, 2020 Commencement date Annual lease

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The following facts pertain to a non-cancelable lease agreement between Larkspur Leasing Company and Crane Company, a lessee. May 1, 2020 Commencement date Annual lease payment due at the beginning of each year, beginning with May 1, 2020 Bargain purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2020 Lessor's implicit rate Lessee's incremental borrowing rate $15,349.90 $6,000 5 years 10 years $ 65,000 $ 76,000 4 % 4 % The collectibility of the lease payments by Larkspur is probable. Compute the amount of the lease receivable at commencement of the lease. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answer to 2 decimal places, eg. 5,275.15.) Lease receivable at commencement e Textbook and Media Assistance Used List of Accounts Prepare a lease amortization schedule for Larkspur for the 5-year lease term. (Round answers to 2 decimal places, eg. 5,275.15.) LARKSPUR LEASING COMPANY (Lessor) Lease Amortization Schedule Annual Lease Payment Plus BPO Interest on Lease Receivable Recovery of Lease Receivable Lease Recelv. Date 5/1/20 $ 0 LARKSPUR LEASING COMPANY (Lessor) Lease Amortization Schedule Annual Lease Payment Plus BPO Date Interest on Lease Receivable Recovery of Lease Receivable Lease Receivi 5/1/20 $ 0 $ 0 0 $ 5/1/20 5/1/21 5/1/22 5/1/23 5/1/24 4/30/25 $ $ 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 2020 and 2021. The lessor's accounting period ends on December 31. Reversing entries are not used by Larkspur. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, eg 5275.15. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease payment) (To record lease payment) eTextbook and Media List of Accounts Suppose the collectibility of the lease payments was not probable for Larkspur. Prepare all necessary journal entries for the company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15.) Date Account Titles and Explanation Debit Credit 5/1/20 e Textbook and Media List of Accounts Sul Lact numin

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