(c) Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2020 and 2021. The lessor's accounting period ends on December 31. Reversing entries are not used by Larkspur. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit 5/1/20 V Right-of-Use Asset Lease Liability (To record the lease) 12/31/20 V (To record lease payment) 5/1/21 V 12/31/21 V 12/31/21 VCurrent Attempt in Progress The following facts pertain to a non-cancelable lease agreement between Larkspur Leasing Company and Crane Company, a lessee. Commencement date Mayr 1, 2020 Annual lease payment due at the beginning of each year. beginning with May 1, 2020 $15,138.16 Bargain purchase option price at end of lease term $4,000 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $50,000 Fair value of asset at May 1, 2020 $68,000 Lessor's implicit rate 8 % Lessee's incremental borrowing rate 8 96 The collectibility of the lease payments by Larkspur is probable. Click here to View factor tables