Ayayal Incorporated leases a piece of equipment to Kingbird Corporation on January 1, 2020. The lease agreement called for annual rental payments of $5,821 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 5 years, a fair value of $24,000, a book value of $19,000, 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 4% 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. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is correct. What is the amount of the rental payments used in the lease agreement? (Round answer to O decimal places, e.g. 5,275.) Rental payments $ 5821 eTextbook and Media List of Accounts Attempts 101 10used Your answer is partially correct. Prepare the entries for Avayai for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, eg. 5.275. Record journal entries in the order presented in the problem) Date 1/1/20 Account Titles and Explanation Cash Unearned Lease Revenue 12/31/20 Unearned Lease Revenue Lease Revenue 12/31/20 (To record the recognition of the revenue) Depreciation Expense Accumulated Depreciation Leased Equipment (To record depreciation expense on the leased equipment) Lebit 5821 5821 Credit 5821 5821