3. Prepare the December 31 journal entry to record amortization at the end of (a) Year 1, (b) Year 2, and (c) Year 3.

On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a operating lease. The lease requires three $23,408 lease payments (the first at the beginning of the lease and the rest at December 31 of Year 1 and Year 2). The present value of the three annual lease payments is $66,700, using a 5.380% interest rate. The lease payment schedule follows. (Table B1 Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided Payments Ending Balance of Lease Debit Interest on Lease Liability Beginning Balance of Lease Liability $66,700 43,292 22,213 Debit Lease Liability Credit Cash Lease Liability 6.003% x (A) + (D) - (B) -Payment $23,408 23,408 23,408 $70,224 Date Jan $23,408 21,079 22,213 $66,700 1. 1, Year 1 Dec. 31, Year 1 Dec. 31, Year2 $43,292 22,213 2,329 1.195 $3,524 Prepare the December 31 journal entry to record amortization at the end of (a) Year 1, (b) Year 2, and (c) Year 3. No Date General Journal Debit Credit 23,408 1Year 1 Dec 31 Amortization expense 23,40863 23.408 Accumulated amortization-Right-of-Use Asset Year 2 Dec 31 Amortization expense 21,079 2 21,079X Accumulated amortization-Right-of-Use Asset 3Year 3 Dec 31 Amortization expense 22,213 22,213 Accumulated amortization-Right-of-Use Asset