Question # 1 (22 marks)

On December 31, 2021, Tiny Tims Tech, Inc. a private company that follows ASPE, leased a colour copier from Cory Copy Corporation at a price of $479,079. The lease agreement specifies annual payments beginning December 31, 2021, the inception of the lease, and at each December 31 through 2026. The estimated useful life of the copier is seven years. At the end of the six-year lease term, the copier is expected to have a residual value of $60,000 which is guaranteed by Tiny Tims Tech Inc.

Cory Copy manufactured the copier at a cost of $300,000.

Cory Copys interest rate for financing the transaction is 10%.

Instructions

c. Prepare an amortization table for both Lessor and Lessee

d. Prepare all the journal entries for the Lease at December 31 2021 and December 31,2022 for Lessee.

e. Prepare all the journal entries for the Lease at December 31 2021 and December 31,2022 for Lessor.

(Please do not copy and paste others' answers) (show all calculations)