ClevelandInc. leased a new crane to Abriendo Construction under a 5-year, non-cancelable contract starting January 1, 2020. Terms of the lease require payments of $48,555 each January 1, starting January 1, 2020. The crane has an estimated life of 7 years, a fair value of $240,000, and a cost to Cleveland of $240,000. The estimated fair value of the crane is expected to be $45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Cleveland and Abriendo adjust and close books annually at December 31. Collectibility of the lease payments is probable. Abriendos incremental borrowing rate is 8%, and Clevelands implicit interest rate of 8% is known to Abriendo.

Prepare all the entries related to the lease contract and leased asset for the year 2020 for the lessee and lessor, assuming Abriendo uses straight-line amortization for all similar leased assets, and Cleveland depreciates the asset on a straight-line basis with a salvage value of $15,000. (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. 1.25125 and the final answer to 0 decimal places e.g. 58,972.)

Date	Account Titles and Explanation	Debit	Credit
	Lessees Entries
1/1/20	Right of Use Asset	?
	Lease Liability		?
	(To record lease.)
1/1/20	Lease Liability	?
	Cash		?
	(To record lease payment.)
12/31/20	Lease Expense	?
	Right of Use Asset		?
	Lease Liability		?
	(To record interest and amortization expense.)
	Lessors Entries
1/1/20	Cash	?
	Unearned Lease Rev		?
	(To record the receipt of payment.)
12/31/20	Depreciation Exp	?
	Accumulated Depreciation		?
	(To record depreciation.)
12/31/20	Unearned Lease Rev	?
	Lease Rev		?