E20.1 (LO 1, 4) (Lessee Entries; Finance Lease with No Residual Value) Joe's Journeys enters into an agreement with Traveler Inc. to lease a car on December 31, 2024. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal or bargain purchase option. The 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 commencenent 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;2025. The finst pyyment is to be of an amount of 55,552.82, with each pay ment increasing by a constant rafe of 5 from the pecyious payment (i.e., the second payment will be $5,830.46 and the third and final payment will be 56.121 .98 ). 4. Joe's Journeys' incremental botrowing rate is 8\%. The rale implicit in the lease is unknown. 5. Joc's Journeys uses straight-line depreciation for all samiliercars Instructions a. Prepare Joe's Journey' journal entries for 2024, 2025, and 2026 b. Assume, instead of a constant rate of increase, the annual loase payments will increase according to the Consumer Price Index ( CPI). At is current levet, the CII stipulates that the fint rental payment should be 55.820 . What would be the impact on the journal entries made by Joev Journeys at contmencement of the lease, as well as for subsequent years