Problem 21-01 The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Teal Company, a lessee. January 1, $121,506 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 $45,000 $40,000 6 years 6 years $635,000 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. Your answer is partially correct. Try again. 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 to o decimal places e.g. 5,2 TEAL COMPANY (Lessee) Lease Amortization Schedule Annual Lease Interest on Reduction of Lease Date Payment Plus GRV Liability Liability Lease Liability 1/1/20 X 0 $ 1/1/20 121506 1/1/21 121506 X 1/1/22 121506 X X 1/1/23 121506 1/1/24 121506 x 1/1/25 121506 X 12/31/26 X X Prepare all of me journal entries Tor me lessee for any lo record the lease agreement, the rease payments, and all experises related to this Tease. Assume me ressees annual accounting perou enus on December 31. (Creuil account uues are automatically muenceu when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to o decimal places e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit x (To record the lease.) X (To record first lease payment.) x (To record interest.) X X (To record amortization.) x (To record second lease payment.) (To record interest.) X (To record amortization.)