Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Teal Mountain Company. The following information relates to this agreement. 1. The term of the non-cancelable lease 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 $56,000, 3. 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 $3,000, none of which is guaranteed. 4. The agreement requires equal annual rental payments of $18,479 to the lessor, beginning on January 1,2020. 5. The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 4% and is unknown to the lessee. 6. Teal Mountain uses the straight-line depreciation method for all equipment. Prepare all of the journal entries for the lessee for 2020 and 2021 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 . (Credit account tities ore automatically indented when amount is entered. Do not indent manualiy. Round answers to O decimal places, e.gi 5,265 . Record journal entries in the order presented in the problem.) Accumulated Depreciation-Right-ot-Use Asset (To record amortization of the right-of-use asset) (To reverse interest expense) (To record lease payment) (To record interest experse) (To record amortization of the right-of-use asset)