Exercise 15-22 (Algo) Lessee; variable lease payments (LO15-2, 15-6) On January 1, 2021, Taco King leased retail space from Fogelman Properties. The 10-year finance lease requires quarterly variable lease payments equal to 2% of Taco King's sales revenue, with a quarterly sales minimum of $510,000. Payments at the beginning of each quarter are based on previous quarter sales. During the previous 5-year period, Taco King has generated quarterly sales of over $705,000. Fogelman's interest rate, known by Taco King, was 8%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entries for Taco King at the beginning of the lease at January 1, 2021. 2. Prepare the journal entries for Taco King at April 1, 2021. First quarter sales were $715,000. Amortization is recorded quarterly Required 1 Required 2 Prepare the journal entries for Taco King at the beginning of the lease at January 1, 2021. (If no entry is requir transaction/event, select "No journal entry required" in the first account field. Round your answers to the neare amount.) General Journal Credit No 1 Date January 01, 2021 Right-of-use asset Lease payable Debit 185,905 185,905 Required 1 Required 2 Prepare the journal entries for Taco King at April 1, 2021. First quarter sales were $715,000. Amortization is reco quarterly. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fi your answers to the nearest whole dollar amount.) No General Journal Credit Date April 01, 2021 Debit 256,987 1 Interest expense Lease expense 715,000