Sunland Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Xiu Inc. The following information concerns the lease agreement.

Inception date		January 1, 2020
Lease term		5 years
Fair value of equipment Jan. 1, 2020		$340,000
Economic life of leased equipment		7 years
Annual rental payments starting Jan. 1, 2020		$57,871
Option to purchase at the end of the term		none
Depreciation method		Straight-line
Residual value		none
Sunland's incremental borrowing rate		6%

Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.

Using (1) factor tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the right-of-use asset and lease liability. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)

The amount of the right-of-use asset

$

Prepare the initial entry to reflect the signing of the lease agreement. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2020

eTextbook and Media

List of Accounts

Prepare an amortization schedule for the term of the lease to be used by Sunland. Use Excel. (Round answers to 0 decimal places, e.g. 5,275.)

Sunland Corp. Lease Amortization Schedule (Lessee)
Date		Annual Payment		Interest on Unpaid Liability		Reduction of Lease Liability		Balance of Lease Liability
								$
January 1, 2020		$				$
January 1, 2021				$
January 1, 2022
January 1, 2023
January 1, 2024

eTextbook and Media

List of Accounts

Prepare the journal entries on Sunland Corp.'s books to record the payments related to this lease for the years 2020 and 2021 as well as any adjusting journal entries at its fiscal year ends of December 31, 2020 and 2021. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2020Jan. 1, 2021Dec. 31, 2021
	(To record depreciation)
Dec. 31, 2020Jan. 1, 2021Dec. 31, 2021
	(To record interest)
Dec. 31, 2020Jan. 1, 2021Dec. 31, 2021
Dec. 31, 2020Jan. 1, 2021Dec. 31, 2021
	(To record depreciation)
Dec. 31, 2020Jan. 1, 2021Dec. 31, 2021
	(To record interest)