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

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Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Concord Company, The following inforination relates to this agreement 1. The term of the non-cancelable least 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 $72,000. 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 $12,000, none of which is guaranteed. 4. The agreement requires equal annual rental payments of $21,25090 to the lessor, beginning on banuary 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. Concord uses the straight-line depreciation method for all equipment. Click here to view factor tables. Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease pymments, and all expenses related to this lease. Assume the lessee's annal accounting period ends on December 31. (For calalotion purposes, use 5 decimol ploces as displayed in the factor tabie provided and round arswers to 2 dedimal places es, 5,265.25, Credit dccount tibles are autcmatically indented dispioyed in the factor the amount is enterod. Do not indent mancalily. Record fournal entrles in the order presented in the probiem) Prepare all of the journal entries for the lessee for 2000 to record the loase agreement, the lease pryments, arid al expeiner riatrd to this lease. Assume the lessee's annual sccounting period ends on December 31. FFor cdlculation purposer use 5 dedind blaces an When the arnount is entered, Do not indent mancolly, Record joumat entries in the onder greiented ha the problion]

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