Accounting $2036,$ Assignment A Chapter #$20$On July $1$st$1,20$X$4,$ the Yuan Yuan Guo Corporation, a manufacturer and distributor of DVD recorders, entered a lease with Zhiyin Huang Rental Inc. Yuan Yuan Guo agreed to lease $20$ DVDs for a period of six years beginning July $15$t$,20$X$4.$ Other lease terms as follows:Annual Lease Payments beginning $01/07/$X$4$Manufacturing Cost of each DVD$*.$Normal Selling Price of each DVDEstimated economic $($EUL$)$ for the DVD$\text{'}$s$.......$Implicit rate in the lease $($not known by Zhiyin Huang$)$$ $2,0033005259$ years$10\mathrm{.}0\%$Estimated Residual Value of each DVD at the end of the lease term $($not guaranteed by Zhiyin Huang$)....$$ $80$Zhiyin Huang can borrow at $12\mathrm{.}0$ percent and agrees to assume full responsibility for all repairs and maintenance of the machines. Zhiyin Huang will return the DVDs to Yuan Yuan Guo. Since Zhiyin Huang is a good credit risk, Yuan Yuan Guo is certain to collect the lease payments and will not incur any additional costs after the date of the lease agreement.Both Companies follow ASPERequired:$1.$ Determine how Yuan Yuan Guo, the lessor, and Zhiyin Huang, the lessee, should classify the lease$\mathrm{.}2.$ Prepare all required journal entries for the Lessee on July $15,20$X$4\mathrm{.}3.$ Prepare the required journal entries for the Lessee on December $31$st$,20$X$4($assuming a December $31$st Fiscal Year End$)\mathrm{.}4.$ Prepare the required journal entries for the Lessee on July $1$st$,20$X$55.$ Prepare the required journal entries for the Lessee on December $31$st$,20$X$5($assuming a December $31$st Fiscal Year End$)\mathrm{.}6.$ Assume that when the DVD$\text{'}$s are returned to Yuan Yuan Guo at the end of the lease term, the residual value of each DVD is only $$70.$Prepare the journal entry to record the return of the machines by ZhiyinHuang.