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Flounder Corporation leased equipment to Shamrock, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $1,082 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $8,100, a book value of $6,100, and Flounder expects a residual value of $5,600 at the end of the lease term. Flounder set the lease payments with the intent of earning a 4% return, though Shamrock is unaware of the rate implicit in the lease and has an incremental borrowing rate of 6%. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Your answer is partially correct. Prepare all necessary journal entries for Shamrock in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 1/1/20 Right-of-Use Asset Lease Liability (To record the lease) 1/1/20 Lease Liability Cash (To record lease payment) 12/31/20 Lease Expense Lease Liability Right-of-Use Asset x Your answer is incorrect. How would the measurement of the lease liability and right-of-use asset be affected if, as a result of the lease contract, Shamrock was also required to pay $600 in commissions, prepay $800 in addition to the first rental payment, and pay $200 of insurance each year? (Round answers to 0 decimal places, e.g. 5,275.) Lease liability $ Right-of-use-asset $