On January 1, 2020, Bramble Animation sold a truck to Peete Finance for $35,000 and immediately leased it back. The truck was carried on Bramble's books at $31,000. The term of the lease is 5 years, there is no bargain purchase option, and title does not transfer to Bramble at lease-end. The lease requires 5 equal rental payments of $7,862 at the end of each year (first payment on January 1, 2018). The appropriate rate of interest is 4%, the truck has a useful life of 5 years, with no expected residual value at the end of the lease term.

Prepare Bramble's 2020 journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

Click here to view factor tables.

Date Account Titles and Explanation Debit Credit

enter an account title enter a debit amount enter a credit amount

for the journal entry on January 1 2020

for the journal entry on January 1 2020 enter an account title enter a debit amount enter a credit amount

for the journal entry on December 31 2020 enter an account title enter a debit amount enter a credit amount

for the journal entry on December 31 2020 enter an account title enter a debit amount enter a credit amount