Exercise 21A-19 a-d (Part Level Submission) Grouper Corporation leased equipment to Skysong, Inc. on January 1, 2017. The lease agreement called for annual rental payments of $1,205 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $8,200, a book value of $6,200, and Grouper expects a residual value of $5,700 at the end of the lease term. Grouper set the lease payments with the intent of earning a 6 % return , though Skysong is unaware of the rate implicit in the lease and has an incremental borrowing rate of 8% . There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Prepare all necessary journal entries for Skysong in 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Date Debit Credit 1/1/17 Right-of-Use Asset Lease Liability (To record the lease) 1/1/17 Lease Liability cash (To record lease liability) 12/31/17 Lease Expense Lease Liability Right-of-Use Asset Open Show Work Click if you would like to Show Work for this