Use the information for Indiana Jones NV from BE21.20. Assume that for Lost Ark AG, the lessor, collectibility of lease payments is probable and the carrying amount of the equipment is €180,000. Prepare Lost Ark’s 2021 and 2022 journal entries.

BE21.20

Indiana Jones NV enters into a 6-year lease of equipment on December 31, 2021, which requires 6 annual payments of €40,000 each, beginning December 31, 2021. In addition, Indiana Jones guarantees the lessor a residual value of €20,000 at the end of the lease. However, Indiana Jones believes it is probable that the expected residual value at the end of the lease term will be €10,000. The equipment has a useful life of 6 years. Prepare Indiana Jones’ December 31, 2021, journal entries, assuming the implicit rate of the lease is 6% and this is known to Indiana Jones.