Wildhorse Leasing Company leases a new machine to Blossom Corporation. The machine has a cost of $$65,000$ and fair value of $$95,500.$ Under the $3-$year, non$-$cancelable contract, Blossom will receive title to the machine at the end of the lease. The machine has a $3-$year useful life and no residual value. The lease was signed on January $1,2025.$ Wildhorse expects to earn an $8\%$ return on its investment, and this implicit rate is known by Blossom. The annual rentals are payable on each December $31,$ beginning December $31,2025.$

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$($b$)$

Your answer is correct.

Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $0$ decimal places eg$.5,275.)$

$($c$)$

Prepare the journal entry at commencement of the lease for Wildhorse. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

$\backslash$table$[[$Date Account Titles and Explanation$],[\frac{1}{1}\frac{?}{25}$ Lease Receivable$],[$Costof Goods Sold$],[$Sales Revenue$],[$Inventory$]]$

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$($b$)$

Your answer is correct.

Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $0$ decimal places es $5,275.$

Receipt$/$ Payment

Interest $(8\%)$ Revenuel Expense

Reduction of Principal

Receivable$/$ Liability

$$ $

i

$

i

$

$$

$$

$37057$

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