CALCULATOR ALL SCREEN PRINTER VERSION NEXT Exercise 21-02 (Part Level Submission) On December 31, 2019, Splish Brothers Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Splish Brothers to make annual payments of $8,634 at the beginning of each year, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $4,900 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Splish Brothers uses the straight-line method of depreciation for all of its plant assets. Spis Brothers's incremental borrowing rate is 6%, and the lessor's implitrate is unknown Click here to view factor tables Debit Credit 392501 Date Account Titles and Explanation 12/31/19 8 Tright-of-Use Asset Lease Liability (To record the lease) 12/31/19 Lease Liability 39249.80 TI Cash (To record first lease payment) Amortization Expense 112/31/20 Right-of-Use Asset (To record amortization of the right-of-use asset) 912/31/20 8 Lease Liability Interest Expense - Cash (To record interest expense)