S kleso Intermediate Accounting, 17e CALCULATOR PRINTER VERSION 4 BACK Exercise 21-06 Marin Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Cullumber Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Cullumber has the option to purchase the equipment for $27,000 upon termination of the lease. It is not reasonably certain that Cullumber will exercise this option 2. The equipment has cost of $340,000 and fair value of $396,500 to Marin Leasing. The useful economic life is 2 years, with a residual value of $27,000 3. Marin Leasing desirs to earn a return of 5% on its investment. 4. Collectibility of the payments by Marin Leasing is probable. Click here to view factor tables. your answer is partially correct. Try again. Prepare the journal entries on the books of Marin Leasing to reflect the payments received under the lease and to recognize income for the years 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposd, use 5 decimal places as displayed in the factor table provided and round fi answers to o decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/20 Lease Receivable Cost of Goods Sold D Gain on Disposal of Equip Leased Equipment | 12/31/20 Cash Lease Receivable Interest Revenue 20 MacBook Pro CALCULATOR PRINTER VERSION BACK NE ES Lease Receivable Interest Revenue 12/31/21 Cash Lease Receivable Interest Receivable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO VIDEO Your answer is incorrect. Try again. Assuming that Cullumber exercises its option to purchase the equipment on December 31, 2021, prepare the journal entry to record the sale on Marin Leasing's books. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Credit 12/31/21 Debit Click if you would like to Show Work for this question Open Show Work SHOW LIST OF ACCOUNTS 20 RA MacBook Pro Z i S kleso Intermediate Accounting, 17e CALCULATOR PRINTER VERSION 4 BACK Exercise 21-06 Marin Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Cullumber Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Cullumber has the option to purchase the equipment for $27,000 upon termination of the lease. It is not reasonably certain that Cullumber will exercise this option 2. The equipment has cost of $340,000 and fair value of $396,500 to Marin Leasing. The useful economic life is 2 years, with a residual value of $27,000 3. Marin Leasing desirs to earn a return of 5% on its investment. 4. Collectibility of the payments by Marin Leasing is probable. Click here to view factor tables. your answer is partially correct. Try again. Prepare the journal entries on the books of Marin Leasing to reflect the payments received under the lease and to recognize income for the years 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposd, use 5 decimal places as displayed in the factor table provided and round fi answers to o decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/20 Lease Receivable Cost of Goods Sold D Gain on Disposal of Equip Leased Equipment | 12/31/20 Cash Lease Receivable Interest Revenue 20 MacBook Pro CALCULATOR PRINTER VERSION BACK NE ES Lease Receivable Interest Revenue 12/31/21 Cash Lease Receivable Interest Receivable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO VIDEO Your answer is incorrect. Try again. Assuming that Cullumber exercises its option to purchase the equipment on December 31, 2021, prepare the journal entry to record the sale on Marin Leasing's books. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Credit 12/31/21 Debit Click if you would like to Show Work for this question Open Show Work SHOW LIST OF ACCOUNTS 20 RA MacBook Pro Z