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The following facts are for a non-cancellable lease agreement between Cullumber Corporation and Russell Corporation, a lessee: Inception date July 1, 2020 $ 20,331.60 $

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The following facts are for a non-cancellable lease agreement between Cullumber Corporation and Russell Corporation, a lessee: Inception date July 1, 2020 $ 20,331.60 $ 4,000.00 Annual lease payment due at the beginning of each year, starting July 1, 2020 Bargain purchase option price at end of lease term reasonably certain to be exercised by Russell Lease term Economic life of leased equipment 5 years 10 years Lessor's cost $ 42.400.00 Fair value of asset at July 1, 2020 $ 88,800.00 9% Lessor's implicit rate 9% Lessee's incremental borrowing rate The collectibility of the lease payments is reasonably predictable and there are no important uncertainties about costs that have not yet been incurred by the lessor. The lessee assumes responsibility for all executory costs. Both Russell and Cullumber use IFRS 16. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE Part 1 Calculate the amount of the right-of-use asset and lease liability. (Round factor values to 5 decimal places, eg. 1.25124 and final answers to 2 decimal places, es 52.75.) Amount e Textbook and Media List of Accounts Part 2 Prepare a lease amortization schedule for the lease obligation using a computer spreadsheet for Russell Corporation for the five- year lease term. (Round answers to 2 decimal places, s. 52.75) Russell Corporation (Lessee) Lease Amortization Schedule Annual Lease Date Payment Plus BPO Interest (9%) on Unpaid Obligation Reduction of Lease Obligation Balance of Lease Obligation 7/1/20 9/1/20 $ 7/1/21 9/1/22 7/1/23 Date Annual Lease Payment Plus BPO Interest (9%) on Unpaid Obligation Reduction of Lease Obligation Balance of Lease Obligation 7/1/20 7/1/20 $ $ 7/1/21 7/1/22 7/1/23 7/1/24 6/30/25 $ Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2020 and 2021. Russell's annual accounting period ends on December 31, and Russell does not use reversing entries. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, eg. 52.75.) Date Account Titles and Explanation Debit Credit 7/1/20 (To record inception and payment of lease.) 12/31/20 12/31/20 To record interest) 12/31/20 (To record depreciation expense.) 7/1/2021 [To record lease payment) 12/31/2021 To record interest.) 12/31/2021 (To record depreciation expense.)

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