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Exercise 21A-5 a-c Marin Leasing Company signs an agreement on January 1, 2017, to lease equipment to Cole Company. The folloPrepare an amortization schedule that is suitable for the lessor for the lease term. (Round answers to 0 decimal places e.g.Prepare all of the journal entries for the lessor for 2017 and 2018 to record the lease agreement, the receipt of lease paymeAccounts Payable
Accumulated Depreciation-Building
Accumulated Depreciation-Leased Building
Accumulated Depreciation-Capital Leases
Accumulated Depreciation-Equipment
Accumulated Depreciation-Leased Equipment
Accumulated Depreciation-Leased Machinery
Accumulated Depreciation-Machinery
Advertising Expense
Amortization Expense
Airplanes
Buildings
Cash
Cost of Goods Sold
Deferred Gross Profit
Deposit Liability
Depreciation Expense
Equipment
Executory Costs
Executory Costs Payable
Gain on Disposal of Equipment
Gain on Disposal of Plant Assets
Gain on Lease
Insurance Expense
Interest Expense
Interest Payable
Interest Receivable
Interest Revenue
Inventory
Land
Leased Asset
Leased Buildings
Leased Equipment
Lease Expense
Leased Land
Lease Liability
Lease Receivable
Lease Revenue
Legal Expense
Loss on Capital Lease
Machinery
Maintenance and Repairs Expense
Notes Payable
Prepaid Lease Executory Costs
Prepaid Legal Fees
Property Tax Expense
Property Tax Payable
Rent Expense
Rent Payable
Rent Receivable
Rent Revenue
Revenue from Sale-Leaseback
Right-of-Use Asset
Salaries and Wages Expense
Sales Revenue
Selling Expenses
Trucks
Unearned Profit on Sale-Leaseback
Unearned Lease Revenue
Unearned Service Revenue

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Answer #1

1. Annual lease payment = 46117

Cost of the asset 240,000
Less: Present value of unguaranteed residual value
[24,323 * PVF(9%,6 years)]		 14503.07521
Total cost to be recovered 225,497
Total cost to be recovered 225,497
PVADF (9%, 6years) 4.88965
Annual Lease payment 46117

2.   

Date Annual lease payment plus URV Interest on lease receivable Recovery of lease receivable Lease receivable
1/1/17 240,000
1/1/17 46117 0 46117 193,883
1/1/18 46117 17449 28668 165,215
1/1/19 46117 14869 31248 133,967
1/1/20 46117 12057 34060 99,907
1/1/21 46117 8992 37125 62,782
1/1/22 46117 5650 40467 22,315
12/31/22 24323 2008 22315 0
301025 61025 240000

3.

Date Account Titles Debit Credit
1/1/17 Lease receivable 240,000
Cost of goods sold 240,000
Sales revenue 240,000
Inventory 240,000
1/1/17 Cash 46117
Lease receivable 46117
12/31/17 Lease receivable 17449
Interest revenue 17449
1/1/18 Cash 46117
Lease receivable 46117
12/31/18 Lease receivable 14869
Interest revenue 14869
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