Need help on part C

Kingbird Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Oriole Medical Center for a period of 10 years. The normal selling price of the machine is $535,210, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be $16,000. The hospital will pay rents of $64,800 at the beginning of each year. Kingbird incurred costs of $256,000 in manufacturing the machine and $14,600 in legal fees directly related to the signing of the lease. Kingbird has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 5%. Oriole Medical Center has an incremental borrowing rate of 5% and an expected residual value at the end of the lease of $10,000. Click here to view factor tables. (a) Your Answer Correct Answer (Used) Discuss the nature of this lease in relation to the lessee. The nature of this lease in relation to the lessee is finance lease Compute the amount of the initial lease liability. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 5,275.) Initial Lease Liability $ 529,070 (b) Your Answer Correct Answer (Used) Prepare a 10-year lease amortization schedule. (Round answers to 0 decimal places e.g. 5,275.) ORIOLE MEDICAL (Lessee) Lease Amortization Schedule (Annuity Due Basis, GRV) Interest on Reduction of Lease Unpaid Liability Liability Beginning of Year Annual Lease Payment Plus GRV Lease Liability Initial PV $ $ $ 529,070 64,800 i 64,800 464,270 2 64,800 23,214 41,586 422,684 3 64,800 21,134 43,666 379,018 4 64,800 18,951 45,849 333,169 5 64,800 16,658 48,142 285,027 6 64,800 14,251 50,549 234,478 7 64,800 11,724 53,076 181,402 8 64.800 9,070 55,730 125,672 9 64,800 6,284 58,516 67,156 10 64,800 3,358 61,442 5,714 End of 10 6,000 286 5,714 0 $ 654,000 $ 124,930 $ 529,070 (c) Prepare all of the lessee's journal entries for the first year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to 0 decimal places e.g. 5,275.) Account Titles and Explanation Debit Credit (To record the lease of x-ray equipment using finance lease method.) (To record payment of annual lease obligation.) (To record accrual of annual interest on lease obligation.) (To record amortization expense for year 1 using straight-line method.)