Current Attempt in Progress Waterway Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $230,000. The terms of the lease are as follows: . The lease term begins on January 1, 2019, and runs for 5 years. The lease requires payments of $52.425 at the beginning of each year starting January 1, 2019 At the end of the lease term, the equipment is to be returned to the lessor. Lantus implied interest rate is 7%, while Waterway's borrowing rate is 8% Waterway uses straight-line depreciation for similar equipment. The year-end for both companies is December 31. Assume that both companies follow ASPE. Click here to view the factor table PRESENT VALUE OF 1 Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE Determine the present value of the minimum dense payments. (Round factor values to 5 decimal places, eg. 1.25124 and final answers to decimal places, eg: 5.275.) $ Present Value Prepare Waterway's lease atriortization schedule Using the effective interest method. (Round answers to decimal places, es. 5,275) Date Payment Interest Principal Bali January 1 2010 January 1. 2019 52425 $ 52423 January 1 2020 52425 Prepare Waterway's lease amortization schedule using the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.) Date Payment Interest Principal Bals January 1. 2019 $ January 1.2019 52425 $ 0 $ 52425 January 1, 2020 52425 January 1,2021 January 1.2022 January 1, 2023 Prepare the 2019 journal entries for Waterway Limited (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit 2019 Jan 1 Equipment under Lease 230000 Equipment undertene 230000 (To record inception of lease.) Jan 1 Equipment under lease 52425 Cash 52425 (To record lease payment) Dec. 31 Interest Expense Interest Payabile (To record interest.) Lan 1 Equipment under los 52425 52425 (To record lease payment.) Dec 31 Interest Expense Interest Payable (To record interest.) Dec 31 Accumulated Depreciation Leased Equipment Equipment under de (To record depreciation expense.)