Swifty Inc. leased a new crane to Blue Spruce Construction Inc. under a six-year, non-cancellable contract starting February 1, 2020. The lease terms require payments of $21,900 each February 1, starting February 1, 2020. Swifty will pay insurance and repair and maintenance charges on the crane, which has an estimated life of 12 years, a fair value of $160,000, and a cost to Swifty of $160,000. The cranes estimated fair value is $50,000 at the end of the lease term. No bargain purchase or renewal options are included in the contract. Both Swifty and Blue Spruce have calendar year ends and use IFRS 16. Collectibility of the lease payments is reasonably certain and there are no uncertainties about unreimbursable lessor costs. Blue Spruces incremental borrowing rate is 8% and Swifty implicit interest rate of 7% is known to Blue Spruce.

Prepare all the entries related to the lease contract and leased asset for the year 2020 for the lessee and lessor, assuming the following executory costs: insurance of $430 covering the period February 1, 2020, to January 31, 2021 and a one-year maintenance contract beginning February 1, 2020 costing $1,180. Straight-line depreciation is used for similar leased assets. The crane is expected to have a residual value of $19,000 at the end of its useful life. (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. Round answers to 0 decimal places, e.g. 5,275.) Lessees Entries

Date	Account Titles and Explanation	Debit	Credit
February 1, 2020December 31, 2020
	(To record inception of lease and first lease payment.)
February 1, 2020December 31, 2020
	(To record interest.)
February 1, 2020December 31, 2020
	(To record depreciation expense.)

Lessors Entries

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2020Feb. 1, 2020

(Collection of rent.)

Dec. 31, 2020Feb. 1, 2020

(To record prepayments.)

Feb. 1, 2020Dec. 31, 2020

(To record rent revenue.)

Dec. 31, 2020Feb. 1, 2020

(To record expired prepayments.)

Dec. 31, 2020Feb. 1, 2020

Identify what will be presented on the statement of financial position and statement of income of both the lessee and the lessor at December 31, 2020. (Round answers to 0 decimal places, e.g. 5,275.)

			Blue Spruce Right-of-Use		Swifty Operating Lease
Statement of financial position:
Property Plant & Equipment:Short Term LiabilitiesCurrent LiabilitiesLong Term LiabilitiesCurrent Assets
			$		$
AddLess:
AddLess:
Property Plant & Equipment:Current LiabilitiesCurrent AssetsLong Term LiabilitiesShort Term Liabilities:
Current AssetsCurrent LiabilitiesShort Term LiabilitiesLong Term LiabilitiesProperty Plant & Equipment::
Statement of income:
			$		$

(To record depreciation expense.)