A lease agreement between Lennox Leasing Company and Gill Company is described in E21-8.

Instructions Refer to the data in E21-8 and do the following for the lessor. (Round all numbers to the nearest cent.)

(a) Compute the amount of the lease receivable at the inception of the lease.

(b) Prepare a lease amortization schedule for Lennox Leasing Company for the 5-year lease term.

(c) 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 2015, 2016, and 2017. The lessor’s accounting period ends on December 31.

Data From  E21-8 

Transcribed Image Text:

BE21-8 Jennifer Brent Corporation owns equipment that cost 80,000 and has a useful life of 8 years with no residual value. On January 1, 2015, Jennifer Brent leases the equipment to Lopez Inc. for one year with one rental payment of 15,000 on January 1. Prepare Jennifer Brent Corporation's 2015 journal entries.