Current Attempt in Progress Assume that on December 31, 2024, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Pharoah Storage Company. The following information pertains to this lease agreement. 1. The agreement requires equal rental payments of $67,699 beginning on December 31, 2024. 2. The fair value of the building on December 31, 2024, is $495,702 3. 4. 5. The building has an estimated economic life of 12 years, a guaranteed residual value of $11,000, and an expected residual value of $7,400. Kimberly-Clark depreciates similar buildings on the straight-line method. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. Kimberly-Clark's incremental borrowing rate is 8% per year. The lessor's implicit rate is not known by Kimberly-Clark Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer is partially correct. Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2024, 2025, and 2026. Kimberly-Clark's fiscal year-end is December 31. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places eg 5,275) Date Account Titles and Explanation 12/31/24 12/31/24 Right-of-Use Asset Lease Liability (To record the lease) Lease Liability Debit 492275 67699 Credi estion 4 of 9 > 0.29/1.25E Date Account Titles and Explanation Debit 12/31/24 v Right-of Use 492275 1231/24 12/31/25 Lee Liability (To record the lease) Lease Liability Ch (To record first lease payment) Amation Expe Right-of-ve (To record amortization of the right-of-use asset) 12/31/25 v Interest Exper Cash (To record interest expense) Amortization Ex 12/01/26 Right of 12/01/2 (To record amortization of the right-of-use anset) Lability Cash (a record interest expense) Q Search 67699 49228 33733 33966 49229 34954 Credi