The following facts pertain to a noncancelable lease agreement between Alschuler Leasing Company and Swifty Electronics, a lessee, for a computer system.

Inception date		October 1, 2017
Lease term		6	years
Economic life of leased equipment		6	years
Fair value of asset at October 1, 2017		$354,500
Residual value at end of lease term		0
Lessors implicit rate		9	%
Lessees incremental borrowing rate		9	%
Annual lease payment due at the beginning of
each year, beginning with October 1, 2017		$72,500

The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs, which amount to $6,100 per year and are to be paid each October 1, beginning October 1, 2017. (This $6,100 is not included in the rental payment of $72,500.) The asset will revert to the lessor at the end of the lease term. The straight-line depreciation method is used for all equipment.
The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for properly as a capital lease by the lessee and as a direct-financing lease by the lessor.

Date		Annual Lease Payment/Receipt		Interest (9%) on Unpaid Liability/Receivable		Reduction of Lease Liability/Receivable		Balance of Lease Liability/Receivable
10/01/17								$354,500
10/01/17		$72,500				$72,500		282,000
10/01/18		72,500		$25,380		47,120		234,880
10/01/19		72,500		21,139		51,361		183,519
10/01/20		72,500		16,517		55,983		127,536
10/01/21		72,500		11,478		61,022		66,514
10/01/22		72,500		5,986		66,514		0
		$435,000		$80,500

Hele Sistem Antocemente CALOLATORIO NET Problem 21-4 The following facts pertain to a noncancelable lease agreement between Alschuler Leasing Company and Swifty Electronics, a lessee, for a computer system. Inception date October 1, 2017 Lease term Economic le of leased equipment Fair value of asset at October 1, 2017 $354,500 Residual value at end of lease term Lessors implicitate Lessee's incremental borrowing rate Annual lease payment due at the beginning of each year, beginning with October 1, 2017 $72,500 The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs, which amount to $6,100 per year and are to be paid each October 1, beginning October 1, 2017. (This $6,100 is not included in the rental payment of $72,500.) The asset will revert to the lessor at the end of the lease term. The straight-line depreciation method is used for all equipment The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for properly as a capital lease by the lessee and as a direct-financing lease by the lessor. Annual Lease Interest (9%) on Unpaid Reduction of Lease Balance of Lease Date Payment/Receipt Liability/Receivable Liability/Receivable Liability/Receivable 10/01/17 10/01/17 10/01/18 10/01/19 10/01/20 10/01/21 10/01/22 172.500 72.500 72.500 72,500 72.500 72.500 5435.000 525,380 21,139 16,517 572,500 47.1.20 51,361 55,503 61,022 66,514 5354,500 5354500 282.000 2300 183.519 127,536 66,514 5.986 $80,500 El Your answer is partially correct. Try again. Assuming the lessee's accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to 0 decimal places e.g. 58,971.) (1) What items and amounts will appear on the lessee's income statement for the year ending September 30, 2018? Hinterested Lease Executory Expense 14773 Depreciation Expense CALCULATOR PRINTER VERSION BACK NEXT (2) What items and amounts will appear on the lessee's balance sheet at September 30, 2018? Balance Sheet (Partial) September 30, 2018 Current Liabilities Lease Liability 47120 Interest Payable 6345 Long-term Liabilities 234880 Lease Liability Property, plant and Equipment Leased Equipment Accumulated Depreciation Equipment 14771 (3) What items and amounts will appear on the lessee's income statement for the year ending September 30, 2019? Interest Expense Lease Executory Expense Depreciation Expense (4) What items and amounts will appear on the lessee's balance sheet at September 30, 2019? Balance Sheet (Partial) September 30, 2019 Current Liabilities Lease Liability Interest Payable Long-term Liabilities E Lease Liability Property, Plant and Equipment Leased Equipment Accumulated Depreciation Equipment CALCULATOR PRINTER VERSION BACK NEXT Your answer is partially correct. Try again. Assuming the lessee's accounting period ends on December 31, answer the following questions with respect to this lease agreement. (Round answers to o decimal places e.g. 58,971.) (1) What items and amounts will appear on the lessee's income statement for the year ending December 31, 2017? Interest Expense Lease Executory Expense Depreciation Expense (2) What items and amounts will appear on the lessee's balance sheet at December 31, 2017? Balance Sheet (Partial) December 31, 2017 Current Liabilities Lease Liability Interest Payable Long-term Liabilities Lease Liability ID DIN Property, plant and Equipment Leased Equipment Accumulated Depreciation Equipment Current Assets (3) What items and amounts will appear on the lessee's income statement for the year ending December 31, 2018? Interest Expense Lease Executory Expense Depreciation Expense (4) What items and amounts will appear on the lessee's balance sheet at December 31, 2018? Balance Sheet (Partial) Current Liabilities Lease Liability Interest Payable Long-term Liabilities Lease Liability Property, Plant and Equipment NO DOO Leased Equipment Accumulated Depreciation-Equipment Current Assets Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT