Prepare the January 1 journal entry at the start of the lease to record any asset or liability.

2. Prepare the January 1 journal entry to record the first $23,408 cash lease payment.

3. Prepare the December 31 journal entry to record amortization at the end of (a) Year 1, (b) Year 2, and (c) Year 3.

4. Prepare the December 31 journal entry to record the $23,408 cash lease payment at the end of (a) Year 1 and (b) Year 2.

On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a operating lease. The lease requires three $23,408 lease payments (the first at the beginning of the lease and the rest at December 31 of Year 1 and Year 2). The present value of the three annual lease payments is $66,700, using a 5.380% interest rate. The lease payment schedule follows. (Table B1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided Payments Debit Interest on Lease Liability Ending Balance of Lease Beginning Balance of Lease Liability $66,700 43,292 22,213 Debit Lease Liability Credit Cash Lease Liability Date Jan. 1, Year 1 Dec. 31, Year 1 Dec. 31, Year 2 6.003% x (A) + (D) - (B) -Payment $23,408 23,408 23,408 $70,224 $23,408 21,079 22,213 $66,700 $43,292 22,213 2,329 1,195 $3,524 Required: 1. Prepare the January 1 journal entry at the start of the lease to record any asset or liability. 2. Prepare the January 1 journal entry to record the first $23,408 cash lease payment. 3. Prepare the December 31 journal entry to record amortization at the end of (a) Year 1, (b) Year 2, and (c) Year 3 4. Prepare the December 31 journal entry to record the $23,408 cash lease payment at the end of (a) Year 1 and (b) Year 2