Problem 10-12AC Accounting for Operating Lease LO C3 On January 1. Rogers (lessee) signs a three-year lease for machinery that is accounted for as a operating lease. The lease requires three $19,907 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 $56,600, using a 5,620% interest rate. The lease payment schedule follows. 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 $19,907 cash lease payment. 3. Prepare the December 31 journal entry to record amortization at the end of (a) Yeat 1,(b) Year 2 , and (c) Year 3. 4. Prepare the December 31 joumal entry to record the $19.907 cash lease payment at the end of (a) Year 1 and (b) Year 2 Complete this question by entering your answers in the tabs below. Prepare the January 1 journal entry at the start of the lease to record any asset or lability. Complete this question by entering your answers in the tabs below. 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. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Prepare the January 1 journal entry to record the first $19,907 cash lease payment. Journal entry worksheet Record the first lease payment on January 1. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Prepare the December 31 journal entry to record amortization at the end of (a) Year 1, (b) Year 2, and (c) Year 3. Journal entry worksheet Record amortization of right-of-use asset at December 31 of the first year. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Prepare the December 31 joumal entry to record amortization at the end of (a) Year 1 , (b) Year 2 , and (c) Year Journal entry worksheet Record amortization of right-of-use asset at December 31 of the second year. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Prepare the December 31 journal entry to record amortization at the end of (a) Year 1 , (b) Year 2 , and (c) Year 3 Journal entry worksheet