Exercise 21-02 (Part Level Submission) On December 31, 2019, Larkspur Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Larkspur to make annual payments of $9,318 at the beginning of each year of the lease, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $5,500 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Larkspur uses the straight-line method of depreciation for all of its plant assets. Larkspur's incremental borrowing rate is 3%, and the lessor's implicit rate is unknown. Click here to view factor tables. Prepare all necessary journal entries for Larkspur for this lease through December 31, 2020. (Record journal entries in the order prese Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decima Date Account Titles and Explanation Debit Credit 12/31/19 Leased Equipment Lease Liability (To record the lease) 12/31/19 - Lease Liability Cash (To record first lease payment) 12/31/20 Depreciation Expense Accumulated Depreciation la do (To record amortization of the right-of-use asset) 12/31/20 Interest Expense Interest Payable Cash (To record interest expense)