6... Cheyenne Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is $276,779, and its unguaranteed residual value at the end of the lease term is estimated to be $18,400. National will pay annual payments of $39,900 at the beginning of each year. Cheyenne incurred costs of $189,300 in manufacturing the equipment and $3,700 in sales commissions in closing the lease. Cheyenne has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 10%. Prepare a 10-year lease amortization schedule for Cheyenne, the lessor. (Round answers to 0 decimal places e.g. 5,275.) CHEYENNE COMPANY (Lessor) Lease Amortization Schedule Annuity Due Basis, Unguaranteed Residual Value Beginning of Year Annual Lease Payment Plus Residual Value Interest on Lease Receivable Lease Receivable Recovery Lease Receivable Initial PV $ $ $ $ 1 2 3 4 5 6 7 8 9 10 End of 10 $ $ $ Save for Later Attempts: 0 of 1 used Submit Answer (c) The parts of this question must be completed in order. This part will be available when you complete the part above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6...

Cheyenne Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is $276,779, and its unguaranteed residual value at the end of the lease term is estimated to be $18,400. National will pay annual payments of $39,900 at the beginning of each year. Cheyenne incurred costs of $189,300 in manufacturing the equipment and $3,700 in sales commissions in closing the lease. Cheyenne has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 10%.

Prepare a 10-year lease amortization schedule for Cheyenne, the lessor. (Round answers to 0 decimal places e.g. 5,275.)

CHEYENNE COMPANY (Lessor) Lease Amortization Schedule Annuity Due Basis, Unguaranteed Residual Value
Beginning of Year	Annual Lease Payment Plus Residual Value	Interest on Lease Receivable	Lease Receivable Recovery	Lease Receivable
Initial PV	$	$	$	$
1
2
3
4
5
6
7
8
9
10
End of 10
	$	$	$

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