Exercise 21-8 The following facts pertain to a noncancelable lease agreement between Coronado Leasing Company and Whispering Company, a lessee. Inception date: May 1, 2017 Annual lease payment due at the beginning of each year, beginning with May 1, 2017 $21,751.90 Bargain-purchase option price at end of lease term $3,700 Lease term 3 years Economic life of leased equipment 10 years Lessor's cost $67,000 Fair value of asset at May 1, 2017 $93,000 Lessor's implicit rate 10 % Lessee's incremental borrowing rate 10 % The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lesson. The lessee assumes responsibility for all executory costs. The expected residual value of the equipment at the end of 5 (10) years is $12,000 ($0). Click here to view factor tables Prepare a lease amortization schedule for Whispering Company for the 5-year lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25126 and Round answers to 2 decimal places, e.g. 15.25.)WHISPERING COMPANY ( Lessee) Lease Amortization Schedule Annual Lease Payment Plus Interest on Reduction of Lease Date BPO Liability Liability Lease Liability 5/1/17 5/1/17 5/1/18 5/1/19 5/1/20 5/1/21 4/30/22 $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2017 and 2018. Whispering's annual accounting period ends on December 31. Reversing entries are used by Whispering. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and Round answers to 2 decimal places, e.g. 15.25.)Date Account Titles and Explanation Debit Credit (To record the lease.) (To record the first lease payment.) (To To record interest.) (To record depreciation.) 5/1/18 (To record interest. )