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

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

******It's not 22,233

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 Debit Interest on Lease Liability Ending Balance of Lease Beginning Balance of Lease Liability $66,700 43,292 22,213 Debit Lease Liability Credit Cash Lease Liability Date Jan. 1, Year 1 Dec. 31, Year 1 Dec. 31, Year 2 6.003% x (A) + (D) - (B) -Payment $23,408 23,408 23,408 $70,224 $23,408 21,079 $43,292 22,213 2,329 1,195 $3,524 22,213 $66,700 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 1Year 1 Dec 31 Amortization expense 22,2333 Accumulated amortization-Right-of-Use Asset 22,233 3 2 Year 2 Dec 31 Amortization expense 22,233 Accumulated amortization-Right-of-Use Asset 22,233 Year 3 Dec 31 Amortization expense 22,233 Accumulated amortization-Right-of-Use Asset 22,233