Blossom Corporation, which uses ASPE, enters into a 6-year lease of equipment on September 1, 2020, that requires 6 annual payments of $15,000 each, beginning September 1, 2020. In addition, Blossom guarantees the lessor a residual value of $5,000 at lease end. The equipment has a useful life of seven years.

Using (1) tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the capital lease and prepare Blossom's September 1, 2020 journal entry assuming an interest rate of 6%. (Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Equipment under Lease 81710 Obligations under Lease 63185 Cash 18525 (To record inception of lease and first lease payment.) Assume instead that Blossom follows IFRS and that the amount expected to be paid under the residual value guarantee is $8,000. Calculate the amount of the right-of-use asset and prepare Blossom's September 2020 journal entry, assuming an interest rate of 6%. (Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Right-of-Use Asset 83825 Lease Liability 63185 Cash 20640 (To record inception of lease and first lease payment.) Sandhill Ltd., a public company following IFRS 16, recorded a right-of-use asset and lease liability at $170,100 on May 1, 2020. The interest rate is 12%. Sandhill made the first lease payment of $28,504 on May 1, 2020. The lease requires a total of 9 annual payments. The equipment has a useful life of 9 years with no residual value. Prepare Sandhill's December 31, 2020 adjusting entries. (Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense 12744 Lease Liability 12743 (To record interest.)