Grouper Incorporated leases a piece of equipment to Skysong Corporation on January 1, 2020. The lease agreement called for annual rental payments of $5,037 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $25,500, a book value of $20,500, and both parties expect a residual value of $3,200 at the end of the lease term, though this amount is not guaranteed. Grouper set the lease payments with the intent of earning a 5% return, and Skysong is aware of this rate. 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 factor tables (For calculation purposes, use 5 decimal places as displayed in the factor table provided) Study Determine the nature of the lease to both Grouper and Skysong. tease to Grouper. The lease is b/on The lease is aan lease to Skysong WOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare the base amortization schedule(s) for Skysong for all 4 years of the lease. (Hound answers to decimal places) SKYSONG CORPORATION Lease Amortation Schedule Annuity-Due Basis Reduction of Date Annual Payment Interest on Lab Lease Liability 1/1/20 1/1/20 1/1/21 1/11/22 Prepare the lease amortization schedule(s) for Skysong for all 4 years of the lease. (Round answers to 0 decimal places, e.g. 5,275.) SKYSONG CORPORATION Lease Amortization Schedule Annuity-Due Basis Reduction of Annual Payment Interest on Liability Lease Liability Lease Liability 1/1/20 Date $ $ 1/1/20 1/1/21 1/1/22 1/1/23 Lease Expense Schedule Interest on Amortization of Lease Liability ROU Asset Lease Expense (Straight-Line) Date Carrying Value of ROU Asset 1/1/20 $ $ 12/31/20 12/31/21 12/31/22 12/31/23 SHOW LIST OF ACCOUNTS Prepare the journal entries for Skysong for 2020 and 2021. (Credit account titles are automatically indented when the amount is en entries in the order presented in the problem.) Account Titles and explanation Date Debit Credit (To record the lease) (To record lease payment) SHOW LIST OF ACCOUNTS Suppose Skysong incurs initial direct costs of $800 related to the lease. Prepare the journal entries for 2020. (Credit account titles entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease payment) Click If you would like to Show Work for this question: Open Show Work