June 1, 2020 $46,941.26 The following facts pertain to a non-cancelable lease agreement between Blossom Leasing Company and Kingbird Company, a lessee. Commencement date Annual lease payment beginning with June 1, 2020 Bargain purchase option price at end of lease term $12,100 Lease term Economic life of leased equipment (no salvage value) Lessor's cost Fair value of asset at June 1, 2020 $160,000 $182,000.01 4 years 12 years Lessor's implicit rate (known to lessee) Lessee's incremental borrowing rate 6 % 6 % The collectibility of the lease payments by Blossom is probable. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record the first lease payment) (To record interest expense) (To record amortization of the right-of-use asset) (Reversing entry) (To record interest expense) (To record amortization of the right-of-use asset)