Ayayai Incorporated leases a piece of equipment to Kingbird Corporation on January 1, 2020. The lease agreement called for annual rental payments of $4,683 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $24,100, a book value of $19,100, and both parties expect a residual value of $8,100 at the end of the lease term, though this amount is not guaranteed. Ayayai set the lease payments with the intent of earning a 5% return, and Kingbird is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature.

Your answer is partially correct. Try again. Prepare the lease amortization schedule(s) for Kingbird for all 4 years of the lease. (Round answers to O decimal places, e.g. 5,275.) KINGBIRD CORPORATION Lease Amortization Schedule Annuity-Due Basis Reduction of Interest on Liability Lease Liability Annual Payment Lease Liability Date 1/1/20 17436 1/1/20 4683 4683 12753 1/1/21 4683 638 4045 8708 1/1/22 4683 435 4248 4460 1/1/23 4683 223 4460 Lease Expense (Straight-Line) Lease Expense Schedule Interest on Amortization of Lease Liability ROU Asset Carrying Value of ROU Asset Date 1/1/20 12/31/20 17436 4359 638 4359 13077 12/31/21 4359 4359 8718 12/31/22 4359 223 4359 4359 12/31/23 4359 4359 Tuul diswel is par LIDITY CUILL. Il y ayolll. Prepare the journal entries for Kingbird for 2020 and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit T 1/1/20 Right-of-Use Asset 17436 7 17436 Lease Liability (To record the lease) T 1/1/20 TLease Liability 4683 Cash 4683 (To record lease payment) Interest Expense 13077 1 Lease Liability 638 T 1/1/21 Lease Liability 4683 Cash 4683 Amortization Expense TLease Liability T Right-of-Use Asset 43594359 Your answer is partially correct. Try again. Suppose Kingbird incurs initial direct costs of $700 related to the lease. Prepare the journal entries for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit | 1/1/20 TRight-of-Use Asset i 18136 Lease Liability 17436 700 T Cash (To record the lease) (Lease Liability L 11/1/20 4683 4683 I Cash (To record lease payment) 12/31/20 - 1 4534 Click if you would like to Show Work for this question: Open Show Work