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…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 2E: Lessee Accounting with Payments Made at Beginning of Year Adden Company signs a lease agreement...

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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

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