Brief Exercise 21A-12 Kingbird Corporation manufactures drones. On December 31, 2016, it leased to Althaus Company a drone that had cost $110,300 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $38,400 payable each December 31, beginning December 31, 2016. An interest rate of 8% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Kingbird's December 31, 2016, journal entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2016 (To record the lease) December 31, 2016 To record receipt of lease payment) Click if you would like to Show Work for this question: Open Show Work Brief Exercise 21A-12 Kingbird Corporation manufactures drones. On December 31, 2016, it leased to Althaus Company a drone that had cost $110,300 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $38,400 payable each December 31, beginning December 31, 2016. An interest rate of 8% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Kingbird's December 31, 2016, journal entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2016 (To record the lease) December 31, 2016 To record receipt of lease payment) Click if you would like to Show Work for this question: Open Show Work