Chapter 14 Homework Help Save AR Submit 1 30 On December 31, 2020, a day when the wallable interest rate was 98 Vacent Products Inc leased equipment with an seven year life The contract called for an $7.400 annual lease payment at the end of each of the next five years, with the equipment becoming the property of the lessee at the end of that period. Use TABLE MA2 (Use appropriate foctor(s) from the tables provided.) Required: 1. Prepare entries to record (Do not round intermediate coleulations. Round the tinni enswers to the nonrest whole dollar) the leasing of the equipment b. depreciation expense for 2021 issuming straight line and a zero residual value c. the December 31, 2021, lease payment including the recognition of Interest expense on the lease Mobility on December at 2021 View transaction is View journal entry worksheet General Journal Credit No 1 Date Dec 31, 2020 Debit 20.704 Lesent 25784 113 2 Dec 31, 2021 Den esede Accumulated depreciation based upon Dec 31, 2021 Intex Les Can 2501 4.00 BADM 203, 16 200 eBook 2. Prepare an amortization schedule for the lease liability. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Year 2021 2022 9023 2024 2025 Total expense Beginning Reduction Lease Interest Net Liability Payment In Lease Expense Liability at Liability End of Year 5 28.784 s 7.400 $ 2.5915 4.8095 23,975 23,975 7 400 2158 5.242 18.733 18.733 2.400 1.686 5.714 13010 13,0101 7 400 1.172 3.228 5.791 0.7011 7 400 611 3.79 $ 37,000 $ 3.218 28.782 BAOM2