Each of the four independent situations below describes a sales-type lease in which annual lease payments of $190,000 are payable at the beginning of each year. Each is a finance lease for the lessee.

Situation
1 2 3 4
Lease term (years) 7 7 8 8
Lessor's and lessee's interest rate 10% 12% 11% 11%
Residual value:
Estimated fair value 0 $68,000 $9,800 $68,000
Guaranteed by lessee 0 0 $9,800 $78,000
Determine the following amounts at the beginning of the lease

Situation
1 2 3 4
A The lessor's:
1 Lease payments
2 Gross investment in the lease
3 Net investment in the lease
B The lessee's:
4 Lease payments
5 Right-of-use asset
6 Lease payable

Shawshank real estate agency. oct. 1 pete shawshank begins business as a real estate agent with a cash investment of $25,000 in exchange for common stock. 2 hires an administrative assistant. 3 purchases office furniture for $2,900, by paying $700 cash with the balance on account. 6 sells a house and lot for n. kidman, earning a fee of $3,600, with $600 collected in cash and the balance billed to n. kidman. 27 pays $900 on the balance related to the transaction of october 3. 30 pays the administrative assistant $2,300 in salary for october. 31 collects $1,200 of the balance owed by n. kidman. instructions: (a) journalize the transactions. (you may omit explanations.) (b) what balance would shawshank real estate agency report for accounts payable in its october 31 financial statements? in which category of which financial statements would it be found? (c) what balance would shawshank real estate agency report for accounts receivable in its october 31 financial statements? in which category of which financial statements would it be found?