Question 37 On January 1, 2019, Flounder Inc., a construction company, leased an excavator from LeaseIt Inc. The lease terms are as follows: . Annual lease payments of $23,900 at the beginning of each year for five years At the end of the lease term the asset reverts back to the lessor and the residual value guarantee is $8,300 The incremental borrowing rate is 7% and the implicit rate in the lease is 6% (known by the lessee) Flounder Inc. has a December 31 year end Prepare the journal entries for 2019 for Flounder Inc. Assume Flounder follow IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round decimal places, e.g. 5,275. Round factor values to 5 decimal places, e.g. 1.25124 If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit (To record depreciation) (To record interest)