Cullumber Co$.$ as lessee records a finance lease of machinery on January $1,2025.$ The seven annual

lease payments of $$825,000$ are made at the end of each year. The present value of the lease

payments at $9\%$ is $$4,152,184.$ Cullumber uses the effective$-$interest method of amortization and

straight$-$line depreciation $($no residual value, useful life $7$ years$).$

Instructions

a$)$ Prepare an amortization table for $2025$ and $2026.($Round answers to $0$ decimal places, e$.$g$.5,275.)$

CULLUMBER Co$.$ Lease Amortization Schedule

Instructions

b$)$ Prepare all of Cullumber's journal entries for $2025.($Round answers to $0$ decimal places, e$.$g$.5,275.)$