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

c Get Homework Help With Chege C Laura Leasing Company Signs A X + /courses/37313/assignments/3958951 Assignments > Ch 21: Homework Ch 21: Homework Your grade has been recorded in the Gradebook. Sun, Apr 12, 2020, 1:23:02 PM (America/New York-04:00) Question 8 View Policies Current Attempt in Progress Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Vaughn 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 $74,000. 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 $8,000, none of which is guaranteed. 4. The agreement requires eksual annual rental payments of $22,886,45 to the lessor, beginning on January 1, 2020. 5. The lessee's incremental borrowing rate is 4%. The lessor's implicitrate is 3% and is unknown to the lessee. 6. Vaughn uses the straight-line depreciation method for all equipment 4:14 PM Click here o Be aw S RX EAW 1/18/2020 Home Help With Chetc ure Company SA -es/37313/assignments/3958951 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, e.8. 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.) Date Account Titles and Explanation Debit Credit 1/1/20 Right-of-Use Asset Lease Liability (To record the lease) 12/31/20 Lease Liability Cash (To record lease liability) 12/31/20 c Get Homework Help With Chege C Laura Leasing Company Signs A X + /courses/37313/assignments/3958951 Assignments > Ch 21: Homework Ch 21: Homework Your grade has been recorded in the Gradebook. Sun, Apr 12, 2020, 1:23:02 PM (America/New York-04:00) Question 8 View Policies Current Attempt in Progress Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Vaughn 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 $74,000. 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 $8,000, none of which is guaranteed. 4. The agreement requires eksual annual rental payments of $22,886,45 to the lessor, beginning on January 1, 2020. 5. The lessee's incremental borrowing rate is 4%. The lessor's implicitrate is 3% and is unknown to the lessee. 6. Vaughn uses the straight-line depreciation method for all equipment 4:14 PM Click here o Be aw S RX EAW 1/18/2020 Home Help With Chetc ure Company SA -es/37313/assignments/3958951 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, e.8. 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.) Date Account Titles and Explanation Debit Credit 1/1/20 Right-of-Use Asset Lease Liability (To record the lease) 12/31/20 Lease Liability Cash (To record lease liability) 12/31/20