Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers decimal places e.g. 5,275.) SAGE COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Plus GRV Interest on Liability Reduction of Lease Liability Date Lease Liability 1/1/20 657000 1/1/20 125660 125660 531340 1/1/21 125660 42507 83152 448187 1/1/22 125660 35855 89805 358382 1/1/23 125660 28671 96989 261393 1/1/24 125660 20911 104749 156644 1/1/25 125660 12532 113128 43516 12/31/26 125660 3481 43516 879620 The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Sage Company, a lessee. January 1, $125,660 Commencement date Annual lease payment due at the beginning of each year, beginning with January 1, Residual value of equipment at end of lease term, guaranteed by the lessee Expected residual value of equipment at end of lease term Lease term Economic life of leased equipment Fair value of asset at January 1, Lessor's implicit rate Lessee's incremental borrowing rate $47,000 $42,000 6 years 6 years $657,000 8 % 8% The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Click here to view factor tables. Prepare all of the journal entries for the lessee for and to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting per ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofo amounts. 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 Jan. 1, 2020 Right-of-Use Asset Lease Liability (To record the lease.) Jan. 1, 2020 Lease Liability Cash (To record first lease payment.) Dec 31, 2020 Interest Expense Lease Liability (To record interest.) Dec. 31, 2020 Amortization Expense Right-of-Use Asset (To record amortization.) Jan. 1, 2021 Lease Liability Cash (To record second lease payment.) Dec 31, 2021 Interest Expense Lease Liability (To record interest.) Dec 31, 2021 Amortization Expense Right-of-Use Asset (To record amortization.) x Your answer is incorrect. Suppose Sage received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? Right-of-use asset $ Lease Liability $ What if Sage prepaid rent of $5,000 to Faldo? Right-of-use asset $ Lease Liability $ Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers decimal places e.g. 5,275.) SAGE COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Plus GRV Interest on Liability Reduction of Lease Liability Date Lease Liability 1/1/20 657000 1/1/20 125660 125660 531340 1/1/21 125660 42507 83152 448187 1/1/22 125660 35855 89805 358382 1/1/23 125660 28671 96989 261393 1/1/24 125660 20911 104749 156644 1/1/25 125660 12532 113128 43516 12/31/26 125660 3481 43516 879620 The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Sage Company, a lessee. January 1, $125,660 Commencement date Annual lease payment due at the beginning of each year, beginning with January 1, Residual value of equipment at end of lease term, guaranteed by the lessee Expected residual value of equipment at end of lease term Lease term Economic life of leased equipment Fair value of asset at January 1, Lessor's implicit rate Lessee's incremental borrowing rate $47,000 $42,000 6 years 6 years $657,000 8 % 8% The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Click here to view factor tables. Prepare all of the journal entries for the lessee for and to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting per ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofo amounts. 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 Jan. 1, 2020 Right-of-Use Asset Lease Liability (To record the lease.) Jan. 1, 2020 Lease Liability Cash (To record first lease payment.) Dec 31, 2020 Interest Expense Lease Liability (To record interest.) Dec. 31, 2020 Amortization Expense Right-of-Use Asset (To record amortization.) Jan. 1, 2021 Lease Liability Cash (To record second lease payment.) Dec 31, 2021 Interest Expense Lease Liability (To record interest.) Dec 31, 2021 Amortization Expense Right-of-Use Asset (To record amortization.) x Your answer is incorrect. Suppose Sage received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? Right-of-use asset $ Lease Liability $ What if Sage prepaid rent of $5,000 to Faldo? Right-of-use asset $ Lease Liability $