On September 15, 2020, Cullumber Camping Limited, the lessee, entered into a 20-year lease with Sullivan Corp. to rent a parcel of land at a rate of $31,200 per year. Both Cullumber and Sullivan use ASPE. The annual rental is due in advance each September 15, beginning in 2020. The land has a current fair value of $199,000. The land reverts to Sullivan at the end of the lease. Cullumber Campings incremental borrowing rate and Sullivans implicit interest rate are both 12%.

QUESTIONS:

A) Prepare Cullumber Camping's required journal entries on September 15, 2020, and at December 31, 2020, its year end.

Date	Account Titles and Explanation	Debit	Credit

B) Prepare the entries required on Sullivans books at September 15, 2020, and at December 31, 2020, its year end.

Date	Account Titles and Explanation	Debit	Credit