On January 1, 2020, Bridgeport Company contracts to lease equipment for 5 years, agreeing to make a payment of $150,642 at the beginning of each year, starting January 1, 2020. The leased equipment is to be capitalized at $618,000. The asset is to be amortized on a double-declining-balance basis, and the obligation is to be reduced on an effective-interest basis. Bridgeport's incremental borrowing rate is 6%, and the implicit rate in the lease is 11%, which is known by Bridgeport. Title to the equipment transfers to Bridgeport at the end of the lease. The asset has an estimated useful life of 5 years and no residual value. Click here to view factor tables. Date Account Titles and Explanation Debit Credit January 1, 2020 Right-of-Use Asset 618000 Lease Liability 618000 (To record the lease.) Lease Liability 150,642 Cash 150,642 (To record lease payment.) Date Account Titles and Explanation Debit Credit December 31, 2020 Amortization Expense 247200 Right-of-Use Asset 247200 (To record amortization of the leased asset.) December 31, 2020 Interest Expense 23368 Lease Liability 23368 T