Exercise 21-15 (Part Level Submission) Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Windsor Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years 2. The fair value of the asset at January 1, 2020, is $63,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $5,000, none of which is guaranteed. 4. The agreement requires equal annual rental payments of $20,289 to the lessor, beginning on January 1, 2020 5. The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 4% and is unknown to the lessee. 6. Windsor uses the straight-line depreciation method for all equipment. Click here to view factor tables (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Your answer is correct Prepare an amortiration schedule that would be suitable for the lessee for the lease term. (Round answers to decimal places, eg. 5,265.) WINDSOR COMPANY (Lessee Lease Amortization Schedule Interest on Reduction of Lease Liability Liability Annual Lease Payment (b) Your answer is partially correct. Try again. Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 11/1/20 Lased Equipment C 580151 58015 71/1/20 202891 Lease Liability (To record the lease) L ease Liability Cash To record lease payment) Interest Expense 20289 12/31/20 Interest Payable 12/31/20 (To record interest expense) Depreciation Expense Accumulated Depreciat (10 recru amor con or engrove asset 1 1/1/21 1816 Interest Payable Interest Expense (To reverse interest expense) Lease Liability Lease 1/1/21 Tinterest Expense o cash (To record lease payment) 112731/21 interest Expense Interest Payable (To record interest expense) 12/31/21 Depreciation Expense - - 1160 Accumulated Depreciati (To record amortization of the right of use asset)