Kingbird Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Xiu Inc. The following information concerns the lease agreement.

Inception date		January 1, 2020
Lease term		5 years
Fair value of equipment Jan. 1, 2020		$120,000
Economic life of leased equipment		7 years
Annual rental payments starting Jan. 1, 2020		$21,511
Option to purchase at the end of the term		none
Depreciation method		Straight-line
Residual value		none
Kingbirds incremental borrowing rate		9%

Using (1) factor tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the right-of-use asset and lease liability. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)

The amount of the right-of-use asset

$

Prepare the initial entry to reflect the signing of the lease agreement. (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.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2020

Prepare an amortization schedule for the term of the lease to be used by Kingbird. Use Excel. (Round answers to 0 decimal places, e.g. 5,275.)

Kingbird Corp. Lease Amortization Schedule (Lessee)
Date		Annual Payment		Interest on Unpaid Liability		Reduction of Lease Liability		Balance of Lease Liability
								$
January 1, 2020		$				$
January 1, 2021				$
January 1, 2022
January 1, 2023
January 1, 2024