On January 1, 2014, LOR Company Rented a Machine (3-Year

question 136

Essay

On January 1, 2014, LOR Company rented a machine (3-year life, no residual value, straight-line)to LEE Company for a cash rental payable each December 31, 20 11, 12, and x13.The rental is based on the regular sales price: cost, $35,665; sale price, $45,665.The agreed interest rate was 15% and the lessee retains the machine at the end of the lease term at no additional cost.
(a)The annual rental is $ _.
(b)Complete the following lease amortization schedule: (c)Give the lessor's and lessee's entries on the following dates:

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Definitions:

Great Britain

The island nation comprising England, Scotland, and Wales, which is part of the United Kingdom.

Pearl Harbor Attack

A surprise military strike by the Imperial Japanese Navy Air Service against the United States naval base at Pearl Harbor, Hawaii, on December 7, 1941, leading to the United States' entry into World War II.

Surprise Attack

A military tactic involving an unexpected assault on an adversary, with the intent of catching them off guard and gaining a tactical advantage.

Spanish-American War

A conflict fought between Spain and the United States in 1898, resulting in the U.S. gaining territories in the western Pacific and Latin America.