OrioleCorporation, which uses ASPE, enters into a6-year lease of equipment on September 1, 2020, that requires6annual payments of $15,000each, beginning September 1, 2020. In addition,Orioleguarantees the lessor a residual value of $5,000at lease end. The equipment has a useful life of seven years.

Click here to view the factor table PRESENT VALUE OF 1.

Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE OF 1.

Using (1) tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the capital lease and prepareOriole's September 1, 2020 journal entry assuming an interest rate of10%.(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 factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)

Account Titles and Explanation

Debit

Credit

enter an account title to record inception of lease and first lease payment

enter a debit amount

enter a credit amount

enter an account title to record inception of lease and first lease payment

enter a debit amount

enter a credit amount

enter an account title to record inception of lease and first lease payment

enter a debit amount

enter a credit amount

(To record inception of lease

and first lease payment.)

List of Accounts

Assume instead thatOriolefollows IFRS and that the amount expected to be paid under the residual value guarantee is $8,000. Calculate the amount of the right-of-use asset and prepareOriole's September 2020 journal entry, assuming an interest rate of10%.(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 factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)

Account Titles and Explanation

Debit

Credit

enter an account title to record inception of lease and first lease payment

enter a debit amount

enter a credit amount

enter an account title to record inception of lease and first lease payment

enter a debit amount

enter a credit amount

enter an account title to record inception of lease and first lease payment

enter a debit amount

enter a credit amount

(To record inception of lease

and first lease payment.)