On the last day of its fiscal year ending December 31, 2020, the Lynbrook Inc. completed four financing arrangements. The funds provided by these initiatives will allow the company to expand its operations.

a. Lynbrook issued 7% stated rate bonds with a face amount of $500,000. The bonds mature on December 31, 2030 (10 years). The market rate of interest for similar bond issues was 10%. Interest is paid quarterly beginning on March 31, 2021.

b. The company leased three manufacturing facilities.

Lease 1 requires 15 annual lease payments of $100,000 beginning on December 31, 2020.Lease 2 requires 10 semi-annual lease payments of $25,000 beginning on June 30, 2021.

Lease 3 requires the first of 6 payments of $35,000 to be deferred for 4 years. Accounting standards require the three leases to be recorded as liabilities for the present value of the scheduled payments. Assume that an annual 8% interest rate properly reflects the time value of money for the lease obligations.

Required: Calculate the amounts that will appear in Lynbrooks December 31, 2020, balance sheet for the bonds and the three leases? You must show all your work to receive full credit.