On December 31, 2019 A company leases trailers to B Company under a five-years

The ownership pass to company A at the end of the lease.

The undiscouned minimum lease payment = 64.1 million

interest rate = 3.28%

Residual value= 0

Estimated useful life= 6

Depreciation methods = straight-line method

Requirements:

1-Calculate the lease amortization schedule (for company A and B)

2- Write entries relating to the lease agreement for the first two years of the lease (for company A and B)

3- Write section relating to the lease transactions (in the balance sheet) at the end of the second year (for company A and B)