Exercise 21-03 (Part Level Submission) Kingbird Company leases an automobile with a fair value of $15,671 from John Simon Motors, Inc., on the following terms: Non-cancelable term of 50 months. Rental of $320 per month (at the beginning of each month). Kingbird guarantees a residual value of $1,500. Delaney expects the probable residual value to be $1,500 at the end of the lease term. Estimated economic life of the automobile is 60 months. Kingbird's incremental borrowing rate is 6% a year (0.5% a month). Simon's implicit rate is unknown. 9":\"9'5'1' Click here to View factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) '7 (a) Your answer is correct. What is the nature of this lease to Kingbird? The nature of this lease is a/an lease. Click if you would like to Show Work for this question: Open Show Work Your answer is partially correct. Try again. Record the second month's lease payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Account Ties and Explanation Debit Credit J m . Interest Expense