To raise operating funds, North American Courier Corporation sold its building on January 1, 2021, to an Insurance company for $509,000 and Immediately leased the building back. The lease is for a 10-year period ending December 31, 2030, at which time ownership of the building will revert to North American Courler. The building has a carrying amount of $470,000 (original cost $1,340,000). The lease requires North American to make payments of $86,429 to the Insurance company each December 31. The building had a total original useful life of 30 years with no residual value and is being depreciated on a straight-line basis. The lease has an implicit rate of 11%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the appropriate entries for North American (a) on January 1, 2021, to record the transaction and (b) on December 31, 2021, to record necessary adjustments. 2. Show how North American's December 31, 2021, balance sheet and Income statement would reflect the sale-leaseback. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate entries for North American (a) on January 1, 2021, to record the transaction and (b) on December 31, 2021, to record necessary adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.) View transaction list View journal entry worksheet 1 Record the sale-leaseback. 2 Record cash payment. Record depreciation expense. Note: journal entry has been entered Debit Credit 509,000 Required 2 > 509,000 55.990 30,439 86,429 eBook Print Required: 1. Prepare the appropriate entries for North American (a) on January 1, 2021, to record the transaction and (b) on December 31, 2021, to record necessary adjustments. 2. Show how North American's December 31, 2021, balance sheet and Income statement would reflect the sale-leaseback. Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Show how North American's December 31, 2021, balance sheet and income statement would reflect the sale-leaseback. (Round your intermediate and final answers to nearest whole dollar.) Assets: Building Balance Sheet Less: Accumulated depreciation Liabilities: Current: Notes payable Noncurrent: Notes payable Income Statement Interest expense Depreciation expense $ 1,340,000 $ 1,340,000 $ < Required 1 Required 2 >