The following facts pertain to a non-cancelable lease agreement between Splish Brothers Leasing Company and Sunland Company, a lessee. Commencement date May 1, 2017 Annual lease payment due at the beginning of each year, beginning with May 1, 2017 $15,852.19 Bargain purchase option price at end of lease term $5,000 Lease term 5 years Economic life of leased equipment 10 years Lessors cost $50,000 Fair value of asset at May 1, 2017 $68,000 Lessors implicit rate 11 % Lessees incremental borrowing rate 11 % The collectibility of the lease payments by Splish Brothers is probable. Click here to view the factor table. Compute the amount of the lease receivable at commencement of the lease. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answer to 2 decimal places, e.g. 5,275.15.) Lease receivable at commencement $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare a lease amortization schedule for Splish Brothers for the 5-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.) SPLISH BROTHERS LEASING COMPANY (Lessor) Lease Amortization Schedule Date Annual Lease Payment Plus BPO Interest on Lease Receivable Recovery of Lease Receivable Lease Receivable 5/1/17 $ $ $ $ 5/1/17 5/1/18 5/1/19 5/1/20 5/1/21 4/30/22 $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2017 and 2018. The lessors accounting period ends on December 31. Reversing entries are not used by Splish Brothers. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15.) Date Account Titles and Explanation Debit Credit 5/1/17 (To record the lease) (To record lease payment) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Suppose the collectibility of the lease payments was not probable for Splish Brothers. Prepare all necessary journal entries for the company in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15.) Date Account Titles and Explanation Debit Credit 5/1/17