pls explain calculations

The following facts pertain to a non-cancelable lease agreement between Sandhill Leasing Company and Teal Mountain Company, a lessee. May 1, 2020 $ 17,225.30 $4.000 5 years Commencement date Annual lease payment due at the beginning of each year, beginning with May 1, 2020 Bargain purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2020 Lessor's implicit rate Lessee's incremental borrowing rate 10 years $ 55,000 $ 77,000 8 % 8 % The collectibility of the lease payments by Sandhill is probable Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Prepare a lease amortization schedule for Teal Mountain for the 5-year lease term. (Round answers to 2 decimal places, eg. 5,275.15.) TEAL MOUNTAIN COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Plus BPO Interest on Liability Reduction of Lease Liability Date Lease 5/1/20 $ 0 $ 0 $ 0 $ 5/1/20 17,225.30 0 17,225.30 5/1/21 17,225.30 4781.98 12,443.12 5/1/22 17,225.30 3786.53 13,438.77 5/1/23 17,225.30 2711.43 14.513.87 5/1/24 17,225.30 1550.32 15,674.98 4/30/25 4000 295.99 3704.01 $ 90.126.50 $ 13.126.25 $ 77,000.05 Prepare a lease amortization schedule for Teal Mountain for the 5-year lease term. (Round answers to 2 decimal places, eg 5,275.15.) TEAL MOUNTAIN COMPANY (Lessee) Lease Amortization Schedule nual Lease Payment Plus BPO Interest on Liability Reduction of Lease Liability Lease Liability 0 $ 0 GA $ 77,000 17,225.30 0 17,225.30 59,774.70 17.225.30 4781.98 12,443.12 47,331.38 17,225.30 3786.53 13,438.77 33,892.59 17,225.30 2711.43 14,513.87 19,378.69 17,225.30 1550.32 15,674.98 3703.69 4000 295.99 3704.01 0 90,126.50 $ 13,126.25 $ 77,000.05 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 2020 and 2021. Teal Mountain's annual accounting period ends on December 31. Reversing entries are used by Teal Mountain. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record the first lease payment)