On January 1, 2020, Marigold Ltd. entered into an agreement to lease a truck from Riverbed Ltd. Both Marigold and Riverbed use IFRS 16. The details of the agreement are as follows: Carrying value of truck for Riverbed Ltd. $22,060 $22,060 Fair value of truck Economic life of truck Lease term Rental payments (at beginning of each month) Executory costs included in rental payments each month for insurance Incremental borrowing rate for Marigold Ltd. Marigold Ltd. expects to pay Riverbed Ltd. $3,500 under a residual value guarantee for the truck. Additional information: 5 years 3 years $660 $15 12% 1. There are no abnormal risks associated with the collection of lease payments from Marigold. 2. 3. 4. There are no additional unreimbursable costs to be incurred by Riverbed in connection with the leased truck. At the end of the lease term, Riverbed sold the truck to a third party for $3,175, which was the truck's fair value at December 31, 2022. Marigold paid Riverbed the difference between the guaranteed residual value of $3,500 and the proceeds obtained on the resale. Marigold knows the interest rate that is implicit in the lease. 5. Marigold knows the amount of executory costs included in the minimum lease payments. 6. Marigold uses straight-line depreciation for its trucks with the residual value guarantee of $3,500 for the leased truck. Prepare the journal entries that Riverbed would make on January 1, 2020, and the adjusting journal entries at December 31, 2020, to record the annual interest income from the lease arrangement, assuming that Riverbed has a December 31 fiscal year end. (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. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Jan. 1, 2020 Cash Lease Receivable Equipment Acquired for Lessee Unearned Interest Income Debit 660 Credit 26,075 22060 Insurance Expense Dec. 31, 2020 Unearned Interest Income 164 Interest Income (To record interest.) 4660 15 2,276 Identify all accounts that will be reported by Riverbed Ltd. on its comparative statement of income for the fiscal years ending December 31, 2021 and 2020, and its comparative statement of financial position at December 31, 2021 and 2020. Be specific about the classifications in each statement. negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Riverbed Ltd. Income Statement - Partial For the Year Ended December 31 Revenues Interest Income $ Other Expenses (Recovery) of Insurance Expense Current Assets 2021 2020 2,276 (180) (180) Riverbed Ltd. Statement of Financial Position - Partial December 31 Net investment in vehicle leases $ Non-Current Assets Net investment in vehicle leases 2021 10,335 $ 2020 6,096 Prepare a partial comparative statement of cash flows for Riverbed for the years ended December 31, 2021 and 2020, for all transactions related to the information. Be specific about the classifications in the financial statement. Assume that Riverbed has opted to report interest received as operating activities. ( cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank. Enter 0 for amounts.) Riverbed Ltd. Statement of Cash Flows - Partial Direct Format For the Year Ended December 31 Cash flows from Operating Activities + Interest Expense Received Cash flows from Financing Activities Insurance Expense Received $ 2021 1,644 $ 144 2020 2,111 144