Picture 1 fx A B D E F G H 1 Question 2: Lease Accounting - Lessee (15 marks) 2 QUESTION DATA: You, the Controller at Lupin Jewels Co. just completed a review of a new non-cancellable lease agreement with Ben's Leasing Co. After applying the appropriate lease classification criteria, you correctly concluded the lease to be treated as a capital lease in 3 accordance with IFRS. During your analysis, you obtained the following facts: Lease term commencing April 1, 2021 Economic life of leased equipment 6 years 6 Fair value of leased equipment at April 1, 2021 $100,000 7 Guaranteed residual value at end of lease term $10,000 4 4 years 5 8 The asset will revert to Ben's Leasing Co. at the end of the lease term. Lupin Jewels Co. uses the straight-line depreciation method for all 9 equipment. 10 You prepared the following correct amortization schedule for the first three lease payments: 11 Date Payment Interest Principal 12 13 1-Apr-21 14 1-Apr-21 15 1-Apr-22 16 1-Apr-23 34 Carrying value $ 100,000 85,761 76,668 67,029 P1 P2 P3 14,239 14,239 14,239 5,146 4,600 14,239 9,093 9,639 (3) What accounts and amounts will appear on Lupin's income statement for the year ending December 31, 2022? Use the drop-down 35 boxes to select the appropriate account name. Round all final amounts to the nearest whole dollar using the ROUND formula. 36 37 Account name Amount $ 38 *ROUND to 39 O decimals 40 (4). What accounts and amounts will appear on Lupin's balance sheet as at December 31, 2022? Use the drop-down boxes to select the appropriate account name under the classification provided. Round all amounts to the nearest whole dollar using the ROUND formula. 41 42 Classification Account Name Amount ($) 43 Non-current assets 44 *ROUND to O decimals* 45 46 Current liabilities 47 48 Non-current liabilities 49 END OF QUESTION 2 50 51