U WULUM 20 CH. Consumer B M AN Chapter 111 Syllabus for MAN Any Search FS Online Account The following facts pertain to a non-cancelable lease agreement between Splish Brothers Leasing Company and Sunland 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 $17,865.02 $7,000 5 years 10 years $65,000 $85,000 6 % The collectibility of the lease payments by Splish Brothers is probable. Click here to view factor tables. Your answer is correct. Compute the amount of the lease receivable at commencement of the lease. (For calculation purposes, use 5 decimal places as displayed in the factor provided and round answer to 2 decimal places, e.g. 5,275.15.) Lease receivable at commencement $ 85000 e Textbook and Media Prepare a lease amortization schedule for Splish Brothers for the 5-year lease term. (Round answers to 2 decimal places. e. 5.275.15 SPLISH BROTHERS LEASING COMPANY (Lessor) Lease Amortization Schedule Annual Lease Payment Plus Interest on Lease Recovery of Lease Receivable Receivable $ Lease Receivable Date 5/1/20 85,000 5/1/20 17,865.02 17,865.02 67,134.98 5/1/21 17,865.02 13,836.92 53,298.06 17,865.02 3197,88 14,667.14 38,630.92 5/1/22 5/1/23 17,865.02 2317.86 15547.16 23093.76 17,865.02 1385.03 660377 16479.99 5/1/24 4/30/25 7.000 396.23 6603.77 325.10 96325.10 85000 e Textbook and Media List of Accounts Your answer is partially correct. 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 Splish Brothers. (Credit account titles are outomatically Indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, s. 5.275.15. Record journal entries in the order presented in the problem.) Debit Credit Date 5/1/20 Account Titles and Explanation Equipment 85,000 Lease Receivable 85000 Inventory 85.000 Sales Revenue 85.000 (To record the lease) Sales Revenue 17.865,02 5/1/20 17,865.02 Lease Receivable (To record lease payment) Cash 12/31/20 : Lease Receivable 5/1/21 Lease Receivable 4,028.10 Interest Expense Revenue from Sale-Leaseback 12/31/21 Amortization per Lease Receivable CALLUUN ON veuld List of Accounts - Your answer is partially correct. Suppose the collectibility of the lease payments was not probable for Splish Brothers. 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... 5.275.15) Credit Date Account Titles and Explanation 5/1/20 Lease Receivable Cash Debit 17,865.02 17,865.02 e Textbook and Media List of Accounts Attempts: 1 of 4 used Submit Answe Save for Later