Cullumber Incorporated leases a piece of machinery to Bramble Company on January 1, 2020, under the following terms. 1. The lease is to be for 4 years with rental payments of $10,755 to be made at the beginning of each year. The machinery' has a fair value of $57,782, a book value of $43,120, and an economic life of 10 years. 2. 3. 4. 5. 6. At the end of the lease term, both parties expect the machinery to have a residual value of $21.560. To protect against a large loss. Cullumber requests Bramble to guarantee $14.920 of the residual value, which Bramble agrees to do. The lease does not transfer ownership at the end of the lease term, does not have any bargain purchase options, and the asset is not of a specialized nature. The implicit rate is 5%, which is known by Bramble. Collectibility of the payments is probable. Click here to view factor tables. Evaluate the criteria for classification of the lease, and describe the nature of the lease. For the lessee, it is a eTextbook and Media and for the lessor, it is a Prepare the journal entries for Bramble for the year 2020. (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 present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to O decimal places e.g. 5,275.) Date Account Titles and Explanation Jan. 1 Jan. 1 (To record lease) Dec. 31 (To records first lease payment) Dec. 31 (To record accrued interest) Debit Credit Dec. 31 (To record amortization expense) eTextbook and Media List of Accounts. Prepare the journal entries for Cullumber for the year 2020. (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 present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to O decimal places e.g. 5,275.) Date Account Titles and Explanation Jan. 1 Debit Credit Date Account Titles and Explanation Debit Credit Jan. 1 Jan. 1 (To record lease) Dec. 31 (To record first lease payment) (To record interest revenue) eTextbook and Media eTextbook and Media List of Accounts Evaluate the criteria for classification of the lease, and describe the nature of the lease, assuming that Bramble did not guarantee any amount of the expected residual value. For the lessee, it is a eTextbook and Media List of Accounts and for the lessor, it is a Suppose Bramble did not guarantee any amount of the expected residual value. Prepare the journal entries for Bramble for the year 2020. (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 present value factor calculations to 5 decimal places, eg 1.25124 and the final answer to O decimal places e.g. 5,275.) Question 9 of 9 Suppose Bramble did not guarantee any amount of the expected residual value. Prepare the journal entries for Bramble for the year 2020. (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 present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to O decimal places eg. 5.275) Date Jan. 1 Account Titles and Explanation Jan. 1 (To record lease) Dec. 31 (To record first lease payment) (To record interest and amortization) Debit Credit (To record interest and amortization) eTextbook and Media List of Accounts Suppose Bramble did not guarantee any amount of the expected residual value. Prepare the journal entries for Cullumber for the year 2020. (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 present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 5,275.) Date Account Titles and Explanation Jan. 1 Debit Credit (To record lease payments) Suppose Bramble did not guarantee any amount of the expected residual value. Prepare the journal entries for Cullumber for the year 2020. (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 present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to O decimal places eg. 5,275) Date Account Titles and Explanation Jan. 1 Dec. 31 (To record lease payments) Dec. 31 (To record lease revenue) (To record depreciation) eTextbook and Media Debit Credit Suppose Bramble did not guarantee any amount of the expected residual value. Prepare the journal entries for Cullumber for the year 2020. (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 present value factor calculations to 5 decimal places, eg 1.25124 and the final answer to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Jan. 1 Dec. 31 (To record lease payments) Dec. 31 (To record lease revenue) (To record depreciation) eTextbook and Media Debit Credit