Exercise 21-11 (Part Level Submission) The following facts pertain to a non-cancelable lease agreement between Tamarisk Leasing Company and Carla Vista Company, a lessee. May 1, 2020 Commencement date Annual lease payment due at the beginning of each year, beginning with May 1, 2020 Bargain purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2020 Lessor's implicit rate Lessee's incremental borrowing rate $19,656.69 $7,000 5 years 10 years $65,000 $93,000 6 % 6 % The collectibility of the lease payments by Tamarisk is probable. Click here to view factor tables. Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2020 and 2021. The lessor's accounting period ends on December 31. Reversing entries are not used by Tamarisk. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 5/1/20 Lease Receivable 93000 Cost of Goods Sold 65000 Sales Revenue 93000 Inventory 65000 (To record the lease) 5/1/20 Lease Liability 19656.69 X Cash 19656.69 12/31/20 v Interest Receivable 2933.73 Interest Revenue 2933.73 5/1/21 Cash 19656.69 x Lease Receivable 15256.09 X Interest Receivable 4400.06 12/31/21 v Interest Receivable 2323.49 Interest Revenue 2323.49 Click if you would like to Show Work for this question: Open Show Work