Cullumber Incorporated leases a piece of machinery to Bramble Company on January $1,2025,$ under the following terms. Prepare the journal entries for Bramble for the year $2025.($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$.1\mathrm{.}25124$ and the final answer to $0$ decimal places e$.$g$.5,275.$ List all debit

entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

$($To record lease$)$

$($To records first lease payment$)$

$($To record accrued interest$)$

$($To record amortization expense$)$ Prepare the journal entries for Cullumber for the year $2025.($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$.1\mathrm{.}25124$ and the final answer to $0$ decimal places e$.$g$.5,275.$ List all debit

entries before credit entries.$)$ 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

$,$ and for the lessor, it is a

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Suppose Bramble did not guarantee any amount of the expected residual value. Prepare the journal entries for Bramble for

the year $2025.($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 present value factor calculations to $5$ decimal

places, e$.$g$.1\mathrm{.}25124$ and the final answer to $0$ decimal places e$.$g$.5,275.$ List all debit entries before credit entries.$)$Suppose Bramble did not guarantee any amount of the expected residual value. Prepare the journal entries for Cullumber

for the year $2025.($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 present value factor calculations to $5$ decimal

places, e$.$g$.1\mathrm{.}25124$ and the final answer to $0$ decimal places e$.$g$.5,275.$ List all debit entries before credit entries.$)$

$($To record lease revenue$)$

$($To record depreciation$)$

The lease is to be for $4$ years with rental payments of $$11,091$ to be made at the beginning of each year.

The machinery has a fair value of $$59,176,$ a book value of $$44,160,$ and an economic life of $10$ years.

At the end of the lease term, both parties expect the machinery to have a residual value of $$22,080.$ To protect against a

large loss, Cullumber requests Bramble to guarantee $$15,310$ 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.

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Evaluate the criteria for classification of the lease, and describe the nature of the lease.

For the lessee, it is a

$,$ and for the lessor, it is a