Part B: Prepare all necessary journal entries for Pharoah Corporation for 2023

Pharoah Corporation is a machinery dealer whose shares trades on the TSX, and so it uses IFRS. Pharoah leased a machine to Ernst Ltd. on January 1, 2023. The lease is for a six-year period and requires equal annual payments of $24,789 at the beginning of each year. The first payment is received on January 1, 2023. Pharoah had purchased the machine for its inventory during 2022 for $99,400. Collectibility of lease payments is reasonably predictable, and no important uncertainties exist about costs that have not yet been incurred by Pharoah. Pharoah set the annual rental amount to ensure an 11% rate of return. The machine has an economic life of six years, with no residual value, and reverts to P haroah at the termination of the lease. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. (a) Using (1) time value of money tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of each of the following: (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) 1. Gross investment $ 2. Unearned interest income $