Exercise 15-20 Variable lease payments [Lo15-2, 15-6] On January 1, 2018, Wetick Optometrists leased dlagnostic equipment from Southern Corp. which had purchased the equlpment at a cost of $2,026,103. The lease agreement specifies six annual payments of $440,000 beginning January 1, 2018, the beginning of the lease, and at each December 31 thereafter through 2022. The slx-year lease term ending December 31, 2023 (a year after the final payment), Is equal to the estimated useful life of the equipment The contract specifies that lease payments for each year will Increase on the basis of the Increase In the Consumer Price Index for the year Just ended. Thus, the first payment will be $440,000, and the second and subsequent payments might be different. The CPl at the beginning of the lease Is 125. Southern routinely acquires diagnostic equipment for lease to other firms. The interest rate in these financing arrangements is 12%. (FV of $1, PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use approprlate factor(s) from the tables provided.) Requlrec 1. Prepare the appropriate Journal entries for Wetick and Southern to record the lease at its beginning 2. Assuming the CPI IS 130 at that time, prepare the appropriate journal entries related to the lease for Wetick at December 31, 2018 Complete this question by entering your answers in the tabs below Required 1Required 2 Prepare the appropriate journal entries for Wetick and Southern to record the lease at its beginning. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list 1 Record the beginning of the lease for Wetick Optometrists 2 Record the lease payment for Wetick Optometrists Exercise 15-20 Variable lease payments [Lo15-2, 15-6] On January 1, 2018, Wetick Optometrists leased dlagnostic equipment from Southern Corp. which had purchased the equlpment at a cost of $2,026,103. The lease agreement specifies six annual payments of $440,000 beginning January 1, 2018, the beginning of the lease, and at each December 31 thereafter through 2022. The slx-year lease term ending December 31, 2023 (a year after the final payment), Is equal to the estimated useful life of the equipment The contract specifies that lease payments for each year will Increase on the basis of the Increase In the Consumer Price Index for the year Just ended. Thus, the first payment will be $440,000, and the second and subsequent payments might be different. The CPl at the beginning of the lease Is 125. Southern routinely acquires diagnostic equipment for lease to other firms. The interest rate in these financing arrangements is 12%. (FV of $1, PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use approprlate factor(s) from the tables provided.) Requlrec 1. Prepare the appropriate Journal entries for Wetick and Southern to record the lease at its beginning 2. Assuming the CPI IS 130 at that time, prepare the appropriate journal entries related to the lease for Wetick at December 31, 2018 Complete this question by entering your answers in the tabs below Required 1Required 2 Assuming the CPI is 130 at that time, prepare the appropriate journal entries related to the lease for Wetick at December 31, 2018. (If no entry is required for a transaction/event,select "No journal entry required in the first account field. Round your answers to the nearest whole dollar amount. View transaction list 1 Record the lease and interest payment for Wetick Optometrists 2 Record the amortization of right-to-use asset for Wetick Optometrists