CullumberCorporation, which uses ASPE, enters into a6-year lease of equipment on September 1, 2020, that requires6annual payments of $29,000each, beginning September 1, 2020. The equipment has a useful life of seven years. Assume that a residual value of $17,700is expected at the end of the lease, but thatCullumberdoes not guarantee the residual value.

Click here to view the factor table PRESENT VALUE OF 1.

Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.

Using (1) tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the capital lease. PrepareCullumber's September 1, 2020 journal entry, assuming an interest rate of8% and that Merrill also uses ASPE.(Credit account titles are automatically indented when the amount is entered.Do not indent manually. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)

Account Titles and Explanation Debit Credit

enter an account title to record inception of lease and first lease payment enter a debit amount enter a credit amount

enter an account title to record inception of lease and first lease payment enter a debit amount enter a credit amount

enter an account title to record inception of lease and first lease payment enter a debit amount enter a credit amount

(To record inception of lease and first lease payment.)