On January 1, 2020, Blossom Ltd., which uses ASPE, sold a truck to Vaughn Finance Corp. for

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On January 1, 2020, Blossom Ltd., which uses ASPE, sold a truck to Vaughn Finance Corp. for $70,000 and immediately leased it back. The truck was carried on Blossom’s books at $59,000, net of $29,000 of accumulated depreciation. The term of the lease is five years, and title transfers to Blossom at lease end. The lease requires five equal rental payments of $17,996, with each payment made at year end. The appropriate rate of interest is 9%, and the truck has a useful life of five years with no salvage value. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare Blossom’s 2020 journal entries including any year-end adjusting entries at December 31, 2020. (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 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record sale of vehicle enter a debit amount enter a credit amount enter an account title to record sale of vehicle enter a debit amount enter a credit amount enter an account title to record sale of vehicle enter a debit amount enter a credit amount enter an account title to record sale of vehicle enter a debit amount enter a credit amount (To record sale of vehicle.) enter an account title to record inception of lease enter a debit amount enter a credit amount enter an account title to record inception of lease enter a debit amount enter a credit amount (To record inception of lease.) enter an account title to record depreciation expense enter a debit amount enter a credit amount enter an account title to record depreciation expense enter a debit amount enter a credit amount (To record depreciation expense.) enter an account title to record amortization of deferred profit enter a debit amount enter a credit amount enter an account title to record amortization of deferred profit enter a debit amount enter a credit amount (To record amortization of deferred profit.) enter an account title to record lease payment enter a debit amount enter a credit amount enter an account title to record lease payment enter a debit amount enter a credit amount enter an account title to record lease payment enter a debit amount enter a credit amount (To record lease payment.)