Current Attempt in Progress Swifty Corporation ('Swifty') manufactures equipment with an estimated econpmic life of 12 years. On May 30, 2020, Swifty leases it to Gadget Corporation ["Gadget") for a period of 10 vears. Assume both companies follow ASPE. Details of the lease are as follows: Equipment has a fair value and cost at the inception of the lease: $215,588. Guaranteed residual value: $21,000. - Annual lease payment, due at beginning of each year: $25,000. - Lease contains no renewal options and the equipment reverts to Swifty at the end of the lease. - Gadget's incremental interest rate, as well as implicit rate is 5%. - Gadget uses straight-line amortization for similar equipment that it owns. - Swifty has determined that collectibility of lease payments is reasonably predictable and that no additional costs will be incurred. Click here to view the factor table PRESENT VALUE OF 1 Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. E. Your answer is partially correct. Prepare the journal entries for the lessec and lessor at May 30, 2020, and at December 31, 2020, which is the year end for both the lessee and lessor. (Credit account tibles are outomaticolly indented when the amount is entered. Do not indent manuall) Round factor values to 5 decimal places es. 1.25124 and final answers to O decimal ploces, es. 5.275. If no entry is required, select "No enth" for the occount titles and enter 0 for the amounts, Lessee: te Account Titles and Explanation Debit Credit 2020v Right-of-Use Asset 215568 (To record inception of lease.) (To record lease payment.) 25,000 (To record interest.) Depeccistion Espense Accumulated Depreciation-Leaved Equipment (To record depreciation expense.) Lessor: te Account Titles and Explanation (To record collection of lease payment:) (To record interest)] eTextbook and Media List of Accounts Your answer is partially correct. Prepare journal entries at May 30, 2021 for the lessee and lessor. Assume reversing entries are not used. (Credit occount tities are outomaticolly indented when the amoumt is entered. Do not indent manually . Round foctor values to 5 decimal places, eg. 1.25124 and final answers to 0 decimal places, es. 5.275. If no entry is required, select "No entry" for the account titles and enter 0 for the amounted Lessee: Lessor: Prepare fournal entries at May 30, 2021 for the lessee and lessor. Assume reversing entries are not used. (Credit account tities are automatically indented when the amount is entered. Do not indent manuolly. Round factor values to 5 decimal ploces, eg. 1.25124 and