Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Windsor Company. The following information relates to this agreement. 1. 2 3. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years The fair value of the asset at January 1, 2020, is $76,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $7.000, none of which is guaranteed. The agreement requires equal annual rental payments of $24,177.00 to the lessor, beginning on January 1, 2020 The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 4% and is unknown to the lessee Windsor uses the straight-line depreciation method for all equipment 4 5 6 Click here to view factor tables Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31 (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to 2 decimal places, s 5,265 25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem) Prepare air of the joumarenthestor theresseeror 2020 to record the Tease agreement, the lease payments, and alrexpenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (For calculation purposes, use S decimal places as displayed in the factor table provided and round answers to 2 decimal places, eg 5,265.25. Credit account tities are automatically indented when the amount is entered. Do not Indent manually. Record journal entries in the order presented in the problem.) late Account Titles and Explanation Debit Credit 20 Lease Lability (To record the lease) III DO TE (To record lease liability) DUA