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2. Prepare a table summarizing the lease receipts and interest income earned by Calder for this lease.

prepare journal entries for calder for the years 2019,2020,2021

Caider Company, the lessor, enters into a lease with Darwin Company, the lessee, to provide heavy equipment beginning January 1 , 2017. The lease is appropriately classified as a sales-type lease. The lease terms, provisions, and related events are as follows: - The lease is noncancelable, has a term of 8 years, and has no renewal or bargain purchase option. - The annual rentals are $65,000, payable at the end of each year. - The interest rate implicit in the lease is 15%. - Darwin agrees to pay all executory costs directly to a third party. - The cost of the equipment is $280,000. The fair value of the equipment to Caider is $308,021.03. - Calder incurs no material intial direct costs. - Calder expects that it will be able to collect all lease payments. - Calder estimates that the fair value at the end of the lease term will be $50,000 and that the economic life of the equipment is 9 years. This residual value is guaranteed by Darwin. The following present value factors are relevant: following present value factors are relevant: - PV of an ordinary annuityn =8,=15%=4,487322 - PVn=8,1=15%=0.326902 - PVn=1,i=15%=0.869565 Required: 1. Dotermine the proper classirication of the lease. 2. Prepare a table summarizing the lease receipts and interest income eamed by Calder for this lease. 3. Prepare journal entries for Calder for the years 2019, 2020, and 2021 . 4. Next Level Prepare partial balance sheets for December 31, 2019, and December 31, 2020, showing how the accounts should be reported. Use the present value of next year's payment approach to classify the lease recelvable as current and noncurrent. 5. Next Level Prepare partial balance sheets for December 31, 2019, and December 31, 2020, showing how the accounts should be reportect. Use the change in present value approach to classify the lease receivable as current and noncurrent. Chart of Accounts CHART OF ACCOUNTS Calder Company General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 433 Interest Income 122 Lease Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 180 Equipment 511 Insurance Expense 189 Accumulated Depreciation 512 Utilities Expense 190 Equipment Leased to Others 521 Salaries Expense Chart of Accounts 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 180 Equipment 511 Insurance Expense 189 Accumulated Depreciation 512 Utilities Expense 190 Equipment Leased to Others 521 Salaries Expense 532 Bad Debt Expense LIABILITIES 540 Interest Expense 211 Accounts Payable 541 Depreciation Expense 231 Salaries Payable 559 Miscellaneous Expenses 250 Unearned Interest 910 Income Tax Expense 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Analysis Shaded cells have foedback Summary Table of Lease Payments Receivod and Interest income Earned Question not attempted. Question not attempted. Caider Company, the lessor, enters into a lease with Darwin Company, the lessee, to provide heavy equipment beginning January 1 , 2017. The lease is appropriately classified as a sales-type lease. The lease terms, provisions, and related events are as follows: - The lease is noncancelable, has a term of 8 years, and has no renewal or bargain purchase option. - The annual rentals are $65,000, payable at the end of each year. - The interest rate implicit in the lease is 15%. - Darwin agrees to pay all executory costs directly to a third party. - The cost of the equipment is $280,000. The fair value of the equipment to Caider is $308,021.03. - Calder incurs no material intial direct costs. - Calder expects that it will be able to collect all lease payments. - Calder estimates that the fair value at the end of the lease term will be $50,000 and that the economic life of the equipment is 9 years. This residual value is guaranteed by Darwin. The following present value factors are relevant: following present value factors are relevant: - PV of an ordinary annuityn =8,=15%=4,487322 - PVn=8,1=15%=0.326902 - PVn=1,i=15%=0.869565 Required: 1. Dotermine the proper classirication of the lease. 2. Prepare a table summarizing the lease receipts and interest income eamed by Calder for this lease. 3. Prepare journal entries for Calder for the years 2019, 2020, and 2021 . 4. Next Level Prepare partial balance sheets for December 31, 2019, and December 31, 2020, showing how the accounts should be reported. Use the present value of next year's payment approach to classify the lease recelvable as current and noncurrent. 5. Next Level Prepare partial balance sheets for December 31, 2019, and December 31, 2020, showing how the accounts should be reportect. Use the change in present value approach to classify the lease receivable as current and noncurrent. Chart of Accounts CHART OF ACCOUNTS Calder Company General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 433 Interest Income 122 Lease Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 180 Equipment 511 Insurance Expense 189 Accumulated Depreciation 512 Utilities Expense 190 Equipment Leased to Others 521 Salaries Expense Chart of Accounts 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 180 Equipment 511 Insurance Expense 189 Accumulated Depreciation 512 Utilities Expense 190 Equipment Leased to Others 521 Salaries Expense 532 Bad Debt Expense LIABILITIES 540 Interest Expense 211 Accounts Payable 541 Depreciation Expense 231 Salaries Payable 559 Miscellaneous Expenses 250 Unearned Interest 910 Income Tax Expense 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Analysis Shaded cells have foedback Summary Table of Lease Payments Receivod and Interest income Earned Question not attempted. Question not attempted

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