Sheffeld has leased a large. Alpha$-3$ computer instem from the manufacturer. The lease callh for a monethly rental of $$33,000$ for the $144$ month $(12$ years$)$ of the lease term. The eitimuted useful life of the compoter is $15$ yems.

All rentals are payable on the first dyy of the month beginning with August $1,2025,$ the date the computer was installed and the leane agreement was signed. The lease is non$-$cancelable for its $12-$var term and it is secured only by the manulacturer's chattel lien on the Alpha$-3$ mystem

This lease is so be accounted for as a finance lease by Sheffeld, and it will be amortized by the straight$-$line method. Borrowed fands for this type of transaction would cost Sheffeld $6$ K per vear $105$ K per monthl. Following is a schedule of the present value of an annuity due for selected periods discounted at $0\mathrm{.}5$$ per period when payments are made at the beginning of each period.

$\backslash$table$[[$Periods $($months$),$Present Valve of as Asmuity Due Discounted at $0\mathrm{.}5\%$ per Perriod$],[1,1000],[2,1\mathrm{.}995],[3,2\mathrm{.}965],[143,102$ an$7],[144,102\mathrm{.}987]]$

Prepure all entries Seefleld thould mube in its accounting recordi during Aupust $2025$ relating to thin leme. Remember, Aupnit $32.$ doidng entrles fCreflit account titfer arr outamaticilly indented mhee amoust ts entered. Do ast indent manully if as entry is required, select $"$No Intry' for the account titles and enter $0$ for the amounts. Round annwern to $0$ decimal places, e$\mathrm{.}5.125.$ Fiecond journal entries in the order presented in the problem. Lhe all decivt entries before credit entries$)$

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Account Tittes and Exptanation

Detit

Cresit