Ayayai Corporation entered into a lease agreement on January 1, 2020, to provide Blossom Company with a piece of machinery. The terms of the lease agreement were as follows. 1. The lease is to be for 3 years with rental payments of $12,992 to be made at the beginning of each year. 2. The machinery has a fair value of $62,000, a book value of $40,000, and an economic life of 8 years. 3. At the end of the lease term, both parties expect the machinery to have a residual value of $30,000, none of which is guaranteed. 4. The lease does not transfer ownership at the end of the lease term, does not have a bargain purchase option, and the asset is not of a specialized nature. 5. The implicit rate is 5%, which is known by Blossom. 6. Collectibility of the payments is probable. Prepare the amortization schedules Blossom will use over the lease term. BLOSSOM COMPANY Lease Amortization Schedule Annuity-Due Basis Interest on Liability Reduction of Lease Liability Annual Payment Lease Liability $ 37149 12992 $ 12992 24157 12992 1208 11784 12373 12992 619 12373 0 Lease Expense Schedule (A) Straight-Line Expense (B) Interest on Lease Liability (C) Amortization of Right-of-Use Asset (and Liability) (A-B) Carrying Value of Right-of-Use Asset $ 37149 12992 $ 1208 11784 25365 12992 619 12373 12992 12992 0 12992 0 Prepare the 2020 journal entries for Blossom. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Date Account Titles and Explanation Debit Credit Jan. 1 (To record lease) Jan. 1 (To record first lease payment) Dec. 31 (To record lease expense and amortization)