Exercise 21-2 Whispering Company leases an automobile with a fair value of $16,738 from John Simon Motors, Inc, on the following terms 1. Noncancelable term of 50 months. 2. Real of $100 per month (at end of each month). (The present value at 1% per month is $15,679.) 3. Estimated residual vakie after 50 months is $1,190. (The present value at 1% per month is $724.) Whispering Company guarantees 4. Estimated economice of the automobile is 60 months. 5. Whispering Company's incremental borrowing rate is 12% a year (1% a month). Simon's impliot rate is unknown. Your answer is correct. What is the present value of the minimum lease payments? The present value of the minimum lease payments SHOW LIST OF ACCOUNTS OW SOLUTION NOW ANSWER Your answer is partially correct. Try again. (c) Record the lease on Whispering Company's books at the date of inception. (Credit account title for the amounts.) tomatically indeed where around is eviteved. Do not inden manually. Ir Debit Credit Account Titles and Explanation Leased Equipment 16403|| Lease Laby 16403 (d) Record the first month's depreciation on Whispering Company's books (assume straight-line). (Credit acco titles and enter o for the amounts. Round answers to decimal places, e.g. 15.) Account Titles and explanation Debit Deprecation Expense c e d Depreciation-Capital Leases ( Record the first month's lease payment (Credit accountities are automatically indented when amount is entered. Do norindent manaby.no vary Brow manually. If no entry is required, select "No Entry s e answers to decimal places, 9. 15.) (d) Record the first month's depreciation on Whispering Company's books (assume straight-line). (Credit account titles are titles and enter o for the amounts. Round answers to o decimal places. e... 150 Account Titles and Explanation Debit Credit Depreciation Expense Accumulated Depreciation-Capital Leases (e) Record the first month's lease payment. (Credit account titles are automatically indented when amount is entered. Do answers to o decimal places, e.g. 15.) Account Titles and Explanation Debit Credit Lease Liability Interest Expense cash