Marin Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement.1. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years.2. The cost of the asset to the lessor is $451,000. The fair value of the asset at January 1, 2020, is $451,000.3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $24,225, none of which is guaranteed.4. The agreement requires equal annual rental payments, beginning on January 1, 2020.5. Collectibility of the lease payments by Marin is probable.Prepare an amortization schedule that is suitable for the lessor for the lease term. (Round answers to 0 decimal places e.g. 5,275.)MARIN LEASING COMPANY (Lessor)Lease Amortization ScheduleDate Annual Lease Payment PlusURV Interest on LeaseReceivable Recovery of LeaseReceivable Lease Receivable1/1/20 $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount 1/1/20 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount1/1/21 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount1/1/22 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount1/1/23 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount1/1/24 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount1/1/25 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount12/31/25 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount $enter a total amount for this column $enter a total amount for this column $enter a total amount for this column

Note:- Since the lessor's desired rate of return on its investment is missing in the question,…

Answered: Marin Leasing Company signs an…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Marin Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement.

1.		The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years.
2.		The cost of the asset to the lessor is $451,000. The fair value of the asset at January 1, 2020, is $451,000.
3.		The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $24,225, none of which is guaranteed.
4.		The agreement requires equal annual rental payments, beginning on January 1, 2020.
5.		Collectibility of the lease payments by Marin is probable.

Prepare an amortization schedule that is suitable for the lessor for the lease term. (Round answers to 0 decimal places e.g. 5,275.)

MARIN LEASING COMPANY (Lessor) Lease Amortization Schedule
Date	Annual Lease Payment Plus URV	Interest on Lease Receivable	Recovery of Lease Receivable	Lease Receivable
1/1/20	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount
1/1/20	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
1/1/21	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
1/1/22	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
1/1/23	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
1/1/24	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
1/1/25	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
12/31/25	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
	$enter a total amount for this column	$enter a total amount for this column	$enter a total amount for this column

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions