Brief Exercise 21A-6 Kingbird Company leased equipment from Costner Company, beginning on December 31, 2016. The lease term is 4 years and requires equal rental payments of $32.230 at the beginning of each year of the lease, starting on the commencement date (December 31, 2016). The equipment has a fair value at the commencement date of the lease of $120,000, an estimated useful life of 4 years, and no estimated residual value. The appropriate interest rate is 5%. Prepare Kingbird's 2016 and 2017 journal entries, assuming Kingbird depreciates similar equipment it owns on a straight-line basis. (Credit account titiles are automatically indented when the amount is entered. Do not indent manualy. 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 Debit Date Account Titles and Explanation Credit 12/31/16 To record lease liability) 12/31/16 To record lease payment) 12/31/17 To record interest expense) 12/31/17 To record amortization of the right-of-use asset)