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-- Sage Hall Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Oriole Company. The term of the non-cancelable tease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Orlole has the option to purchase the equipment for $22,500 upon termination of the lease. It is not reasonably certain that Oriole will exercise this option 2 The equipment has a cost of $250,000 and fair value of $275,000 to Sage Hill Leasing. The useful economicile is 2 years with a residual value of $22,500. 3. Sage Hill Leasing desires to eam a return of 5% on its investment 4. Collectibility of the payments by Sage Hill Leasing is probable. Click here to vien factor tables Prepare the journal entries on the books of Sage Hall 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 purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places eg. 5,275.) Date Account Titles and Explanation Debit Credit Assuming that Oriole exercises its option to purchase the equipment on December 31, 2021, prepare the journal entry to record the sale on sagell Leasing' bookt. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 12/31/21 ty Click if you would like to Show Work for this questions or Show. Wack Question Attempts of 1 used ET

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