Answer:
1-Jan-21	
Dr Cash	$890,000	
Dr Accumulated Depreciation $305,000 
Cr Building $1,000,000
Gain On Sale of Building $195,000
1-Jan-21	
Dr Right Of Use Assets $1,508,600	
Cr Lease Payable $1,508,600
31-Dec-21	
Dr Interest Expense $105,602
Dr Lease Payment $84,398
Cr Cash $190,000
31-Dec-21	
Dr Amortization Expenses	$84,398	
Right Of Use Assets $84,398
Explanation:
1. & 2. Preparation for the appropriate entries for National Distribution Center on January 1, 2021 and December 31, 2021, to record the sale- leaseback and necessary adjustments
1-Jan-21	
Dr Cash	$890,000	
Dr Accumulated Depreciation $305,000 ($1,000,000-$695,000) 
Cr Building $1,000,000
Gain On Sale of Building $195,000
($890,000+$305,000-$1,000,000)
(To Record Lease) 
1-Jan-21	
Dr Right Of Use Assets ( $190,000* PVAF 7% for 12year)
($190,000*7.94)	$1,508,600	
Cr Lease Payable $1,508,600
(To Record The Lease Payable) 
31-Dec-21	
Dr Interest Expense ($1,508,600*7%)	$105,602
Dr Lease Payment $84,398
($190,000-$105,602)
Cr Cash $190,000
(To Record First Lease payment)
 
31-Dec-21	
Dr Amortization Expenses	$84,398	
Right Of Use Assets $84,398
(To Record Amortisation Expense)