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4 Pharoah Corporation, which uses ASPE, enters into a 6-year lease of equipment on September 1, 2020, that requires 6 annual payments of $28,000 each,

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4 Pharoah Corporation, which uses ASPE, enters into a 6-year lease of equipment on September 1, 2020, that requires 6 annual payments of $28,000 each, beginning September 1, 2020. In addition, Pharoah guarantees the lessor a residual value of $17,000 lease end. The equipment has a useful life of seven years. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE OF 1. Using (1) tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the capital lease and prepare Pharoah's September 1, 2020 journal entry assuming an interest rate of 8%. (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 O for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Equipment under Lease Obligations under Lease Cash (To record inception of lease Assume instead that Pharoah follows IFRS and that the amount expected to be paid under the residual value guarantee is $8,000. Calculate the amount of the right-of-use asset and prepare Pharoah's September 2020 journal entry, assuming an interest rate of 8%. (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 O for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, eg. 5,275.) Account Titles and Explanation Debit Credit Right-of-Use Asset Lease Liability Cash (To record inception of lease and first lease payment.) List of Accounts

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