On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a operating lease. The lease requires three $17,400 lease payments (the first at the beginning of the lease and the rest at December 31 of Year 1 and Year 2). The present value of the three annual lease payments is $49,400, using a 5.780% interest rate. The lease payment schedule follows. (Table B.1 Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Payments B) Debit (E) Ending (A) Beginning Balance of (C) Debit Interest on Balance of (D) Credit Lease Lease Lease Liability 6.0038 x (A) + Liability (A) (C) $32,000 16,450 Liability (D) (B) $17,400 Cash Lease Lease Liability Date Payment $17,400 17,400 17,400 $49,400 32,000 0 Jan. 1, Year 1 Dec. 31, Year 1 1,850 15,550 951 16,450 Dec. 31, Year 2 16,450 $2,800 $49,400 $52,200 Required: 1. Prepare the January 1 journal entry at the start of the lease to record any asset or liability 2. Prepare the January 1 journal entry to record the first $17,400 cash lease payment. 3. Prepare the December 31 journal entry to record amortization at the end of (a) Year 1, (b) Year 2, and (c) Year 3 4. Prepare the December 31 journal entry to record the $17,400 cash lease payment at the end of (a) Year 1 and (b) Year 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the January 1 journal entry to record the first $17,400 cash lease payment. On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a operating lease. The lease requires three $17,400 lease payments (the first at the beginning of the lease and the rest at December 31 of Year 1 and Year 2). The present value of the three annual lease payments is $49,400, using a 5.780% interest rate. The lease payment schedule follows. (Table B.1 Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Payments B) Debit (E) Ending (A) Beginning Balance of (C) Debit Interest on Balance of (D) Credit Lease Lease Lease Liability 6.0038 x (A) + Liability (A) (C) $32,000 16,450 Liability (D) (B) $17,400 Cash Lease Lease Liability Date Payment $17,400 17,400 17,400 $49,400 32,000 0 Jan. 1, Year 1 Dec. 31, Year 1 1,850 15,550 951 16,450 Dec. 31, Year 2 16,450 $2,800 $49,400 $52,200 Required: 1. Prepare the January 1 journal entry at the start of the lease to record any asset or liability 2. Prepare the January 1 journal entry to record the first $17,400 cash lease payment. 3. Prepare the December 31 journal entry to record amortization at the end of (a) Year 1, (b) Year 2, and (c) Year 3 4. Prepare the December 31 journal entry to record the $17,400 cash lease payment at the end of (a) Year 1 and (b) Year 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the January 1 journal entry to record the first $17,400 cash lease payment