Please do b)

On July 1, 2023, Sheridan Corp., which uses IFRS, signs a 4-year, non-cancellable lease agreement to lease a equipment from Pharoah Ltd. The following information concerns the lease agreement. 1. The equipment's fair value on July 1,2023 is $246,000. 2. The agreement requires equal rental payments of $51,600,00 beginning on July 1,2023 . 3. The equipment has an estimated economic life of 5 years, with an unguaranteed residual value of $92,700. Sheridan Corp. depreciates similar equipment using the straight-line method, with no residual value. 4. The lease is non-renewable. At the termination of the lease, the equipment reverts to Pharoah. 5. Sheridan's incremental borrowing rate is 6% per year. The lessor's implicit rate is not known by Sheridan Corp. 6. The yearly rental payment includes $2,593.90 of executory costs related to insurance on the equipment. Using (1) factor tables, (2) a financial calculator, or (3) Excel functions, calculate the amount Sheridan Corp will record for the right-of-use asset and lease liability. (Round factor values to 5 decimal places, es. 1.25124 and final answers to 2 decimal places, es. 5.275.76.) The amount of the right-of-use asset Prepare the initial entry to reflect the signing of the lease agreement. (List all debit entries before credit entries. 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 O for the amounts. Round answers to 2 decimal places, eg. 5.125 .76 \). Prepare the journal entries on Sheridan Corp's books to record the payments and expenses related to this lease for the years 2023 and 2024 as well as any adjusting journal entries at its fiscal year ends of December 31,2023 and 2024. Sheridan does not use reversing entries. (List all debit entries before credit entries. 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 O for the amounts. Round answers to 2 decimal places, e. 5,125.76. Record journal entries in the order presented in the problem.) Dec31.2023 * Interest Expense Lease Liability (To record interest) June 30,2024 Insurance Expense Prepaid Insurance July 1,2024 Interest Expense Prepaid Insurance Lease Liability Cash Dec 31,2024 Insurance Expense. Prepaid Insurance (To record insurance expense) Dec. 31.2024 Depreciation Expense Accumulated Depreciation-Right-of-Use Asset (To record depreciation) Dec 31.2024 Interest Expense Lease Liability (To record interest)