Q1. On Jan 1, 2014 FTS Shoes, signed a 3-year lease agreement for new equipment. The lease required FTS to make annual payments of $45,000 commencing Jan 1, 2014. Interest rate 5%. (7 marks) 1. Journalize the entries required by FTS for each year of lease. 2. Show your calculations on the next page 3. Provide the lease liability Ledger for FTS on the next page. Jan 1 2014 | Dr. Dec 31 2014 Dr. Cr. / / / Jan 1 2015 Dr. Cr. Dec 31 2015 Dr. Cr. Jan 1 2016 Dr. Cr. har 21 2016 Dec 31 2016 TURN OVER AND SHOW YOUR CALCUATIONS AND THE LIABILITY LEDGER b) Show your calculations in this area. 1. Complete the Lease Liability Ledger TRANSACTIONS LEASE LIABLITY Dr. . TURN OVER AND ANSWER QUESTIONS TWO AND THREE Q2. EXPLAIN why decision to require capitalization of leases has been controversial (2 Marks) 03. EXPLAIN your view on the matter (1 mark)