Eubank Company, as the lessee, enters into a lease agreement for equipment on 1 January 2021. The following data are relevant to the lease agreement: 1. The term of the non-cancellable lease is 4 years. Lease payments of $770,000 are due on 1 January of each year, beginning 1 January 2021. 2. The ungranted residual value at the end of the lease is $50,000. 3. The equipment has an economic life of 6 years. 4. Eubank depreciates similar equipment on a straight-line basis. 5. Eubank's incremental borrowing rate is 10% per year. 6. Eubank is aware that the lessor requires an implicit rate of 8%. Required: (Support with detailed calculations.) Al. Prepare journal entries for Eubank Company on 1 January 2021. A2. Explain the interest expense, if any, for Eubank Company during 2021