JULIA-15 LeBron James (... Favorites actice Assignment Gradebook Assignme ORION Downloadable eTextbook nment CALCULATOR FULL SCREEN PRINTER VERSION Brief Exercise 21A-15 Your answer is partially correct. Try again. LeBron James (LBJ) Corporation agrees on January 1, 2017, to lease equipment from Cavaliers, Inc. for 3 years. The lease calls for annual lease payments of $21,000 at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment $10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment. Prepare LBJ's journal entries on January 1, 2017 (commencement of the operating lease), and on December 31, 2017 Assume the implicit rate used by the lessor is unknown, and LBJ's incremental borrowing rate is 4%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to o decimal places, e.g. 5,275.) Click here to view the factor table. Date Account Titles and Explanation 1/1/17 Right-of-Use Asset Lease Liability (To record lease liability) 1/1/17 Lease Liability E Cash (To record lease payment) 12/31/17 Tease Expense Lease Liability Right-of-Use Asset SHOW LIST OF ACCOUNTS LINK TO TEXT SAVE FOR LATER SUBMIT ANSWER Question Attempts: 2 of 10 used