Oriole Corporation manufactures replicators. On January 1 2017 it leased to Althaus Company a replicator that had cost $99 400 to manufacture. The lease agreement covers the 5-year useful life of the replicator and requires 5 equal annual rentals of $44 500 payable each January 1 beginning January 1 2017. An interest rate of 11% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured and there are no important uncertainties concerning costs.Prepare Oriole’s January 1 2017 journal entries.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select “No Entry” for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places e.g. 1.25124 and the final answer to 0 decimal places e.g. 58 971.)
