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(8 marks) Purell Corporation enters into a lease with Excel Inc., a lessor, on August 15,...

Purell Corporation enters into a lease with Excel Inc., a lessor, on August 15, 2018 that does not transfer ownership or contain a bargain purchase option, and it is not for specialized equipment. Both Purell and Excel use IAS 17. The lease covers three years of the equipment’s eight-year useful life, and the present value of the minimum lease payments is less than 90% of the equipment’s fair value. Required: 1) Prepare Purell’s journal entry to record its August 15, 2018 annual lease payment of $31,500. Purell has a November 30th year end

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