Practice Exercise 21-02 (Part Level Submission) On January 2, 2017 Hogan Company leases a machine with a fair value of $35,000 from Snead, Inc., on the following terms: 1. 2. 3. 4. 5. Noncancelable term of 4 years. Rental of $8,825 per year (at beginning of each year). Estimated residual value after 4 years is $4,000. Hogan Company guarantees the residual value of $4,000. Estimated economic life of the machine is 5 years. Hogan Company's incremental borrowing rate is 8% a year. Snead's implicit rate is unknown. ( Record the lease and first lease payment on Hogan Company's books at the date of inception. (Round answers to 0 decimal places, eg. 5,125. Credi amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit (To record the lease) (to record rental payment) Click if you would like to Show Work for this questions Open Show Work