Blossom Ltd$.,$ a public company following IFRS, recently signed a lease for equipment from Costner Ltd$.$ The lease term is $7$ years and requires equal rental payments of $$20,981$ at the beginning of each year. The equipment has a fair value at the lease's inception of $$115,100,$ an estimated useful life of $7$ years, and no residual value. Blossom pays all executory costs directly to third parties. The appropriate interest rate is $9\%.$

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Using tables, a financial calculator, or Excel functions, calculate the amount of the right$-$of$-$use asset and lease liability. Prepare the initial entry to reflect the signing of the lease agreement and the first payment under the lease. $($List all debit entries before credit 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 $0$ for the amounts. Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places, e$.$g$.5,275.)$

Account Titles and Explanation

Debit

Credit