On 2 January 20X4, Yvan Ltd., a public company, entered into a five-year equipment lease with Jeffery Leasing Inc. The lease calls for annual lease payments of $154,000, payable at the beginning of each lease year. Yvans IBR is 7%. Yvan does not know the lessors interest rate. The fair value of the equipment is $679,000. Yvan depreciates equipment on a straight-line basis, taking a full years depreciation in the year of acquisition. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the lease liability amortization schedule for Yvan.

2. Prepare the journal entries relating to the leased asset and the lease liability for 20X4 and 20X5 for Yvan. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. What amounts will appear on Yvans statement of financial position, statement of comprehensive income, and statement of cash flows as of 31 December 20X4?