eal Mountain Company leased equipment from Costner Company, beginning on December 31, 2016. The lease term is 8 years and requires equal rental payments of $51,653 at the beginning of each year of the lease, starting on the commencement date (December 31, 2016). The equipment has a fair value at the commencement date of the lease of $340,000, an estimated useful life of 8 years, and no estimated residual value. The appropriate interest rate is 6%. Click here to view the factor table. Prepare Teal Mountains 2016 and 2017 journal entries, assuming Teal Mountain depreciates similar equipment it owns on a straight-line basis. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit 12/31/16 enter an account title To record lease liability on December 31 2016Entry field with incorrect answer Lease Revenue enter a debit amountEntry field with correct answer 340000 enter a credit amountEntry field with correct answer enter an account title To record lease liability on December 31 2016Entry field with correct answer Lease Liability enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer 340000 (To record lease liability) 12/31/16 enter an account title To record lease payment on December 31 2016Entry field with correct answer Lease Liability enter a debit amountEntry field with correct answer 51653 enter a credit amountEntry field with correct answer enter an account title To record lease payment on December 31 2016Entry field with correct answer Cash enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer 51653 (To record lease payment) 12/31/17 enter an account title To record interest expense on December 31 2017Entry field with correct answer Interest Expense enter a debit amountEntry field with incorrect answer 20400 enter a credit amountEntry field with correct answer enter an account title To record interest expense on December 31 2017Entry field with incorrect answer Interest Payable enter a debit amountEntry field with incorrect answer enter a credit amountEntry field with incorrect answer 20400 enter an account title To record interest expense on December 31 2017Entry field with incorrect answer enter a debit amountEntry field with incorrect answer enter a credit amountEntry field with incorrect answer (To record interest expense) 12/31/17 enter an account title To record amortization of the right-of-use asset on December 31 2017Entry field with incorrect answer Depreciation Expense enter a debit amountEntry field with correct answer 42500 enter a credit amountEntry field with correct answer enter an account title To record amortization of the right-of-use asset on December 31 2017Entry field with incorrect answer Accumulated Depreciation-Building enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer 42500 (To record amortization of the right-of-use asset)