DU journeys enters into an agreement with Traveler Inc. to lease a car on december 31, 2016..............

Exercise 21A1 a DU Journeys enters into an agreement with Traveler Inc. to lease a car on December 31, 2016. The following information relates to this agreement. The term of the noncancelable lease is 3 years with no renewal or bargain purchase option. The 1_ remaining economic life of the car is 3 years, and it is expected to have no residual value at the end of the lease term. 2. The fair value of the car was $15,000 at commencement of the lease. 3. Annual payments are required to be made on December 31 at the end of each year of the lease, beginning December 31, 2017. The rst payment is ll) be of an amount of $5,552.82, with each payment increasing by a constant rate of 5% from the previous payment (i.e., the second payment will be $5,830.46 and the third and nal payment will be $6,121.93). 4. DU Journeys' incremenlal borrowing rate is 8%. The rate implicit in the lease is unknown. 5. DU Journeys uses straightiline depreciation for all similar cars. Prepare DU Journeys' journal entries for 2016, 2017, and 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as dis- played in the factor table provided and round final an- swers to 2 decimal places, e.g. 5,275.25. ) m minim-dink\" 121311\"; l ' 12l31l17 ' l ' (Tn record injured melee) 12131117 l ' ffn rem'd anrmizalinn ddreriJlrI-af-me m) 12l31ll ' l l ffn rem'd imam emaise) 121ml\"! ' ' ffn rem'd anrmizalinn ddreriJlrI-af-me m)