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Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Tamarisk Company. The following information relates to this agreement 1. The

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Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Tamarisk Company. The following information relates to this agreement 1. The term of the non-cancelable fease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years 2 The fair value of the asset at January 1, 2020, Is $73,000 The asset will revert to the essor at the end of the lease term, at which time the asset is expected to have a residual value of $10,000, none of which is guaranteed The agreement requires equatannual rental payments of $22.213.44 to the lessor, beginning on January 1, 2020 The lessee's incremental borrowing rate is 5%. The lessor's implicitrate is 4% and is unknown to the lessee Tamarisk uses the straight line depreciation method for all equipment 4 5. 6. Click here to view tactos tables Prepare all of the journal entries for the lesses 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, eg. 5,265.25. Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. Record Journal entrles in the order presented in the problem.) 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, e85,265.25. 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.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease liability)

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