Problem 21A-15 b-s, dz, d3 (Part Level Submission) Wildhorse Incorporated leases a piece of machinery to Swifty Company on January 1, 2017, under the following terms. 1. 2. 3. 4. 5. 6. The lease is to be for 4 years with rental payments of $15.599 to be made at the beginning of each year. The machinery' has a fair value of $77,000, a book value of $50.000, and an economic life of 10 years. At the end of the lease term, both parties expect the machinery to have a residual value of $23,000. To protect against a large loss, Wildhorse requests Swifty to guarantee $17.500 of the residual value, which Irving agrees to do. The lease does not transfer ownership at the end of the lease term, does not have any bargain purchase options, and the asset is not of a specialized nature. The implicit rate is 5%, which is known by Swifty. Collectibility of the payments is probable. Click here to view the factor table. (b) Your answer is partially correct. Try again. Prepare the journal entries for Swifty for the year 2017. (Credit account titles are automatically indented when the 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 present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to o decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 Right-of-Use Asset 72431 T Lease Liability 80292 (To record lease) Prepare the journal entries for Swifty for the year 2017. (Credit account titles are automatically indented when the 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 present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 Right-of-Use Asset 80292 1 Lease Liability (To record lease) Jan. 1 Lease Liability Cash (To records first lease payment) Dec 31 Interest Expense | Lease Liability (To record accrued interest) Dec 31 Amortization Expense | Right-of-Use Asset (To record amortization expense)