Problem 10-11AC Accounting for finance lease LO C3 [The following information applies to the questions displayed below] On January 1, Rogers (lessee) signs a three year lease for machinery that is accounted for as a finance lease. The lease requires three $26,728 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 2). The present value of the three annual lease payments is $76,300, using a 5.180% interest rate. The lease payment schedule follows. Problem 10-11AC Part 1 1. Prepare the January 1 journal entry at the start of the lease to record any asset or liability. Journal entry worksheet Record the journal entry for any asset or liability at the start of the lease. Noter Enter debits before credits. 2. Prepare the January 1 journal entry to record the first $26,728 cash lease payment. Journal entry worksheet Notet Enter debits before credits. 3. Prepare the December 31 journal entry to record straight-line amortization with zero salvage value at the end of (a) Year 1 , (b) Year 2 . and (c) Year 3. Journal entry worksheet 3 Record amortization of right-of use asset at December 31 of the first yeac. Patei Cmter debits before tredits. 4. Prepare the December 31 journal entry to record the $26.728 cash lease payment at the end of () Year 1 and (b) Year 2 . Journal entry worksheet Record lease payment on December 31 of the first year. Retei Enter debits before crodits