Laporte Company leased a machine on January 1,2020 under a contract calling for four annual payments of 80,000 on December 31,2020 through 2023. The machine becomes the property of the lessee after the fourth payment. The machine was predicted to have a servicd life of six years and no residual value and the interest rate available to laporte engineering was 12% on the day lease was signed. The machine was Delivered on January 10,2020 and was immediately place in serice

Prepare a table showing the calculation of the amount of interest expense allocated to each year the lease is in effect and the carrying amount of the liability at the end of those years

Prepare the entry to record the leasing of the machine

Prepare entries that would be made on December 31,2021 to record the annual depreciation on a straight line basis, and the recording of the lease payment. Also show how the machine and the mease liability should appear on the December 31,2021, balance sheet

the day the lease was sighed. 49 Required: 1. Determine the initial net liability created by the lease and the cost of the leased asset (Da Round the final answers to the nearest whole dollar.) Initial amount of the net liability Payments Beginning Net Liability Year Payment Interest Expense Reduction in Lease Liability Lease Liability at End of Year 2020 2021 2022 2023 Total expense Journal entry worksheet 1 > Record signing of lease agreement. Notes Enter debits before credits Date General Journal Debit Credit Jan 01 2020 Record entry Clear entry Vies general Journal View transaction list Journal entry worksheet 1 2 > Record the depreciation on leased machinery thote: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2021 Record entry Ceny View general journal Journal entry worksheet A 3 1 Record the annual lease payment. Note: Enter debits before credits General Journal Debit Credit Date Dec 31, 2021 View general journal Record entry Clear entry LAPORTE ENGINEERING COMPANY Partial Balance Sheet December 31, 2021 Property, plant and equipment Current liabilities Non-current liabilities