Exercise 21A-13 b Cullumber Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain to the lease agreement. 1. The lease term is 6 years, with equal annual rental payments of $3,938 at the beginning of each year Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature The building has a fair value of $22,700, a book value to Cullumber of $15,700, and a useful life of 7 years At the end of the lease term, Cullumber and Walsh expect there to be an unguaranteed residual value of $3,925 Cullumber wants to earn a return of 7% on the lease, and collectibility of the payments is probable. This rate is known by Walsh 3. 4. view Using the original facts of the lease, show the journal entries to be made by both Cullumber and Walsh in 2017. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to o decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Cullumber Journal Entries Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease payment) 12/31/17 Walsh's Journal Entries Date Account Titles and Explanation Debit Credit To record the lease) (To record lease liability) 12/31/17 To record interest expense) (To record amortization of the right-of-use asset) Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXTLINK TO TEXT