1. Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Kingbird Company. The following information relates to this agreement. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. The fair value of the asset at January 1, 2020, is $66,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $5,000, none of which is guaranteed. The agreement requires equal annual rental payments of $21,328 to the lessor, beginning on January 1, 2020. The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 4% and is unknown to the lessee. 6. Kingbird uses the straight-line depreciation method for all equipment 2. 3. 5. Alles Payment KINGBIRD COMPANY Lease Amortation Schedule Interesten Reduction of Lease Liability Lab 0 0 Lean 0 2 0 365 1945 2011 2133 3015 2013 SO Prepare all of the Journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments and a odenses related to this ente. Assume the annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered Do not indent manually Round answers to decimal places, es 5.265. Recordjouma entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit (To record the lease) To record lease payment) (To record interest expense) (To record amortization of the light-of-use asset) (To reverse interest expense) (To record lakse payment) (To record interest expense) (To record amuzation of the right-of-use asset)