Glaus Leasing Company agrees to lease equipment to Jensen Corporation on January 1, 2021. The following information relates to the lease agreement. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. The cost of the machinery is $525,000, and the fair value of the asset on January 1, 2021, is $700,000. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $50,000. Jensen estimates that the expected residual value at the end of the lease term will be $50,000. Jensen amortizes all of its leased equipment on a straight-line basis. The lease agreement requires equal annual rental payments, beginning on January 1, 2021. The collectibility of the lease payments is probable. The implicit rate of interest is 5%. 1. Compute lease payment (show lessor's calculation): 2. Complete amortization schedule: Cash Pmt Effective Interest Principle reduction Balance 1/1/2021 1/1/2022 1/1/2023 1/1/2024 1/1/2025 1/1/2026 1/1/2027 3. Prepare lessee's and lessor'sjournal entries on the following dates: Jensen (Lessee) Glaus (Lessor) January 1, 2021 December 31, 2021 (Ignore accrual of interest) January 1, 2022