Three different lease transactions are presented below forCullumberEnterprises. Assume that all lease transactions start on January 1, 2021.Cullumberdoes not receive title to the properties, either during the lease term or at the end of it. The yearly rental for each of the leases is paid on January 1 starting on January 1, 2021.CullumberEnterprises prepares its financial statements using ASPE.

Manufacturing Equipment Vehicles OfficeEquipment

Lease term 5 years 6 years 3 years

Estimated economic

life 15 years 7 years 6 years

Yearly rental payment $14,800 $15,496 $3,986

Fair market value

of leased asset $101,790 $89,560 $18,380

Present value of

lease rental payments $57,250 $74,496 $9,180

How should the lease transaction for each of the above assets be recorded on January 1, 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

Jan. 1

(To record payment for manufacturing equipment lease.)Jan. 1

(To record payment for office equipment lease.)Jan. 1

(To record lease asset and liability for vehicles.)Jan. 1(To record payment for vehicles lease.)