LeBron James (LBJ) Corporation agrees on January 1, 2017, to lease equipment from Cavaliers, Inc. for 3 years. The lease calls for annual lease payments of $26,000 at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment. Prepare LBJs journal entries on January 1, 2017 (commencement of the operating lease), and on December 31, 2017. Assume the implicit rate used by the lessor is unknown, and LBJs incremental borrowing rate is 6%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275.) Click here to view the factor table. Date Account Titles and Explanation Debit Credit 1/1/17 Entry field with correct answer Right-of-Use Asset Entry field with correct answer 73668 Entry field with correct answer Entry field with correct answer Lease Liability Entry field with correct answer Entry field with correct answer 73668 (To record lease liability) 1/1/17 Entry field with correct answer Lease Liability Entry field with correct answer 26000 Entry field with correct answer Entry field with correct answer Cash Entry field with correct answer Entry field with correct answer 26000 (To record lease payment) 12/31/17 Entry field with correct answer Lease Expense Entry field with correct answer 26000 Entry field with correct answer Entry field with correct answer Lease Liability Entry field with incorrect answer 52000 Entry field with incorrect answer Entry field with correct answer Right-of-Use Asset Entry field with correct answer Entry field with incorrect answer 26000 SHOW LIST OF ACCOUNTS LINK TO TEXT Question Attempts: 8 of 10 used SAVE FOR LATER SUBMIT ANSWER