The following facts are for a non-cancellable lease agreement between Blossom Corporation and Russell Corporation, a lessee: Inception date 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 Lessor's cost Fair value of asset at July 1, 2020 Lessor's implicit rate Lessee's incremental borrowing rate July 1, 2020 $ 19.901.54 $ 3,500.00 5 years 10 years $ 40,000.00 $ 88,200.00 8% 8% 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 Blossom 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. Your answer is correct. 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, e.g. 52.75.) poration (Lessee) tization Schedule Annual Lease Payment Plus BPO Interest (8%) on Unpaid Obligation Reduction of Lease Obligation Balance of Lease Obligation $ 88200 19901.54 $ 19901.54 68298.46 19901.54 $ 5463.88 14437.66 53860.80 19901.54 4308.86 15592.68 38268.12 19901.54 3061.45 16840.09 21428.03 19901.54 1714.24 18187.30 3240.73 3500 259.26 3240.71 0 $ 103007.70 $ 14807.69 88200 eTextbook and Media List of Accounts 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 account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit 7/1/20 Right-of-Use Asset 88200 Lease Liability 68298.46 Cash 19901.54 (To record inception and payment of lease.) Interest Expense 12/31/20 12/31/20 Lease Liability (To record interest.) Depreciation Expense Accumulated Depreciation - Right-of-Use Asset (To record depreciation expense.) Interest Expense 7/1/2021 Lease Liability Cash 19901.54 12/31/2021 (To record lease payment.) Interest Expense Lease Liability (To record interest.) Depreciation Expense Accumulated Depreciation - Right-of-Use Asset (To record depreciation expense.) 12/31/2021