4. The following facts pertain to a non-cancelable lease agreement between Google Company ("Lessor") and Pepsi Company ("Lessee"). Commencement date January 1, 2020 Annual lease payment due at the beginning of each $19,823.47 year, beginning with January 1, 2020. Residual value of the equipment at the end of the $10,000 lease term, guaranteed by the lessee Expected residual value of the equipment at the $8,000 end of the lease term Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $75,000 Fair value of asset at January 1, 2020 Lessee's incremental borrowing rate $100,000 6% Lessor's implicit rate known by Lessee 4% The collectability of the lease payments by Google Yes Company is probable. Lessee's method of depreciation Straight line basis for all assets a. Compute the lease liability for Pepsi Company ("Lessee") and prepare the journal entries on the lessee's book to reflect the signing of the lease agreement. Pepsi's annual accounting period ends on December 31 b. Prepare a journal entry on the Lessee's books to record the interest expense in 2022 c. Compute the amount of the lease receivable for Google Company ("Lessor") at commencement of the lease and prepare a journal entry to record it on the Lessor books. d. Prepare a journal entry on the Lessor's books to record the interest revenue in 2023