please help and show steps on 21-10

E21-10 (LO2,4) (Lessee Entries with Bargain Purchase Option) The following facts pertain to a non-cancelable lease agree- ment between Mooney Leasing Company and Rode Company, a lessee. Commencement date Annual lease payment due at the beginning of each year, beginning with May 1, 2017 Bargain purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost May 1, 2017 $20,471.94 $ 4,000.00 5 years 10 years $65,000.00 $91,000.00 8% Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate The collectibility of the lease payments by Mooney is probable. 8 % Instructions (Round all numbers to the nearest cent.) (a) Discuss the nature of this lease to Rode. (b) Discuss the nature of this lease to Mooney. (c) Prepare a lease amortization schedule for Rode for the 5-year lease term. (d) Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2017 and 2018. Rode's annual accounting period ends on December 31. Reversing entries are used by Rode. E21-10 (LO2,4) (Lessee Entries with Bargain Purchase Option) The following facts pertain to a non-cancelable lease agree- ment between Mooney Leasing Company and Rode Company, a lessee. Commencement date Annual lease payment due at the beginning of each year, beginning with May 1, 2017 Bargain purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost May 1, 2017 $20,471.94 $ 4,000.00 5 years 10 years $65,000.00 $91,000.00 8% Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate The collectibility of the lease payments by Mooney is probable. 8 % Instructions (Round all numbers to the nearest cent.) (a) Discuss the nature of this lease to Rode. (b) Discuss the nature of this lease to Mooney. (c) Prepare a lease amortization schedule for Rode for the 5-year lease term. (d) Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2017 and 2018. Rode's annual accounting period ends on December 31. Reversing entries are used by Rode