Ch 15 Exercise - 1 Finance/sale Lease On January 1, 2019, Comet International (Lessor) leased equipment to Ajax Limited (Lessee) which Comet purchased for this purpose. The equipment has an estimated useful life of 8 years with no salvage value. The lease term is 5 years with annual payments $21,978 due at the beginning of each year. The implicit interest rate of the lease is 6%, which is also Ajax's cost of capital. At the end of the lease period, Ajax can exercise a bargain purchase option for $25,000. Required: 1) Prepare the schedule of lease payments. 2) Prepare journal entries to record the lease on January 1, 2019 for the lessee and lessor