Sam Automotive Company signs a lease agreement on December 31, 2019, to lease vehicles to Rayan Company. The term of the non-cancelable lease is 5 years, and payments are required at the end of each year. The following information relates to this agreement.

• Fair value of vehicles is 64.1 million SAR

• 3.28% is earn a return on investmment.
• There is no residual value.
• Rayan depreciates its vehicles on a straight-line basis.
• Ownership of the vehicles transfer to Rayan to at the end of the lease.

1) Calculate Lease Amortization ScheduleAnnuity-Due Basis for Rayan Company

2) Write the entries relating to the lease agreement for first 2 years

3) The section relating to the lease transactions (in the balance sheet) at the end of the second year