Walmart Incorporated is the world's largest retailer. A large portion of the premises that the company occupies are leased. Its financial statements revealed the following information: (Amounts in millions) Assets Operating lease right-of-use assets, net Finance lease right-of-use assets, net Liabilities Current liabilities: Operating lease obligations due within one year Finance lease obligations due within one year Long-term debt: Long-term operating lease obligations Long-term finance lease obligations Required: July 31, 2020 July 31, 2019 $ 16,869 4,843 $ 17,239 3,949 1,734 549 1,795 439 15,669 4,673 16,079 3,915 1. The net asset "Finance lease right-of-use assets, net" has a July 31, 2020 balance of $4,843 million. Liabilities for these leases total $5,222 ($549 + $4,673). Why do the asset and liability amounts differ? 2. Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's income statement reports finance lease interest of $331 million. Complete this question by entering your answers in the tabs below. Required 1 Required 2 The net asset "Finance lease right-of-use assets, net" has a July 31, 2020 balance of $4,843 million. Liabilities for these leases total $5,222 ($549 + $4,673). Why do the asset and liability amounts differ? Why do the asset and liability amounts differ? When finance leases are first recorded, right-of-use assets increase by the present value of lease payments, while liabilities increase by the total of lease payments. When finance leases are first recorded, liabilities increase by the present value of lease payments, while right-of-use assets increase by the total of lease payments. After the commencement of the lease, right-of-use assets are reduced by amortization, but lease liabilities are reduced by the principal portion of lease payments