Pearl Company, a risky start-up, is evaluating a lease arrangement being offered by TSP Company for use of a standard computer system. The lease is non-cancelable, and in no case does Pearl receive title to the computers during or at the end of the lease term. The Tease starts on January 1, 2020, with the first rental payment due on January 1, 2020. Additional information related to the lease and the underlying leased asset is as follows. $3.179.60 3 years Yearly rental Lease term Estimated economiclife Purchase option Renewal option 5 years $3,120 at end of 3 years, which approximates fair value 1 year at $1.560.no penalty for nonrenewal: standard renewal clause $10,400 $10,400 Fair value at commencement Cost of asset to lessor Residual value Guaranteed -0 $3,120 Unguaranteed testor's implicit rate (known by the less 109 Estimated tur valuated oflease 53. 120 Analyze the lease capitalization tests for this lease for Pearl. Prepare the journal entries for Pearl for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answers to 2 decimal places, eg. 52.75. Il no entry is required, select "No entry" for the account titles and enter for the amounts Record journal entries in the order presented in the problem.) Click here to view factor tables Date Account Titles and Explanation Debit Credit 11:20 no entry no entry To record the lease) Rentende 3179,60 Cash To record the first lease payment) no LATE DO To record year end entry Analyze the lease capitalization tests for this lease for Pearl. Assuming Pearl has the option to purchase the system at the end of the lease for $100. Prepare the journal entries for Pearl for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round present value factor calculations to 5 decimal places, eg 1.25124 and the final answers to 2 decimal places, eg. 52.75. If no entry is required, select "No entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Click here to view factor tables Date Account Titles and Explanation Debit Credit To record lease To record first lease payment To record interest TO Torta ispins