On January 1, 2021, Blossom Ltd., which uses IFRS 16, entered into an eight-year lease agreement for a conveyor machine. Annual lease payments are $26,300 at the beginning of each lease year, which ends December 31, and Blossom made the first payment on January 1, 2021. At the end of the lease, the machine will revert to the lessor. However, conveyor machines are expected to last for only eight years and have no residual value. At the time of the lease agreement, conveyor machines could be purchased for $151,000 cash. Equivalent financing for the machine could have been obtained from Blossom's bank at 11%. Blossom's fiscal year coincides with the calendar year. Blossom uses straight-line depreciation for its conveyor machines. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Your answer is correct. Calculate the PV of the minimum lease payments using (1) a financial calculator or (2) Excel functions. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 1,452.) Present value of the minimum lease payments 150,231 e Textbook and Media List of Accounts Your answer is correct. Prepare an amortization schedule for the term of the lease to be used by Blossom Ltd. (Hint: You may find the ROUND formula helpful for rounding in Excel.) (Round answers to O decimal places, e.g. 1,452.) Blossom Ltd. Lease Amortization Schedule (Lessee) Interest on Unpaid Liability Annual Lease Payments Reduction of Lease Liability Balance of Lease Liability $ 150,231 $ 26,300 $ 26,300 123,931 26,300 13,632 12,668 111,263 26,300 12,239 14,061 97,202 26,300 10,692 15,608 81,595 26,300 8,975 17,325 64,270 26,300 7,070 19,230 45,040 26,300 4,954 21,346 23,694 26,300 2.606 23.694 0 $ 210,400 $ 60,169 $ 150,231 e Textbook and Media List of Accounts Prepare the journal entries on Blossom Ltd's books to (1) reflect the signing of the lease agreement, (2) record the payments and expenses related to this lease for the years 2021 and 2022, and (3) make any adjusting journal entries at its fiscal year ends of December 31, 2021 and 2022. Blossom does not use reversing entries. (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 Ofor the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit /1/21 Right-of-Use Asset 176,531 Cash 26,300 Lease Liability 150,231 (To record inception and payment of lease.) 2/31/21 Depreciation Expense 18.875 18.875 Accumulated Depreciation - Right-of-Use Asset (To record depreciation expense.) 2/31/21 Interest Expense 13,632 Lease Liability 13,632 (To record interest.) /1/22 Lease Liability 123,931 Cash 123,931 (To record lease payment.) 2/31/22 Depreciation Expense 18,875 Accumulated Depreciation - Right-of-Use Asset 18,875 (To record depreciation expense.) 2/31/22 Interest Expense 12,239 Lease Liability 12,239 (To record interest.) Your answer is partially correct. Prepare a partial comparative statement of financial position at December 31, 2022, and 2021, for all of the accounts related to this lease for Blossom Ltd. Be specific about the classifications that should be used. Blossom Ltd. Statement of Financial Position (partial) December 31 2022 2021 Current Assets erty, plant and Equipment it-of-Use Asset 112,481 $ 131,356 ; : Accumulated Depreciation - Right-of-Use Asset 18,875 18,875 93,606 112,481 ent Liabilities se Liability 26,300 26,300 Current Liabilities je Liability 84,963 97,631 e Textbook and Media Assistance Used List of Accounts