Problem 21A-3 a-d Marigold Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments of $56,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 6%; Marigold's incremental borrowing rate is 8%, Marigold is unaware of the rate being used by the lessor. At the end of the lease, Marigold has the option to buy the equipment for $5,000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Marigold uses the straight-line method of depreciation on similar owned equipment. Your answer is partially correct. Try again. Prepare the journal entries, that Marigold should record on December 31, 2017. (Credit account titles are automatically indented 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 present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places, e.g. 58,971) Account Titles and Explanation Debit Credit Date December 31, 2017 Leased Equipment Lease Liability (To record leased asset and related iability.) Cash (To record the first rental payment.) SHOW LIST OF ACCOUNTS Your answer is partially correct. Try again. Prepare the journal entres hat angold should record on December 31 2018 select "No Entry" for the account titles and enter O for the amounts) Date Credit account titles are automatica y dented when amount i, entered. Do not dem manuat no ent y Re u Account Titles and Explanation Debit Credit December 31, 2018 Amortization Expense Accumulated Depreciation-Leased Equipment (To record amortization.) To record annual payment on lease liability.) SHOW LIST OF ACCOUNTS x Your answer is incorrect. Try again. Your answer is incorrect. Try again. Prepare the journal entries, that Marigold should record on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places e.g. 58,971.) Date Account Titles and Explanation Debit Credit December 31, 2019 To record annual amortization on leased assets.) To record annual payment on lease liability.) SHOW LIST OF ACCOUNTS Your answer is incorrect. Try again. What amounts would appear on Marigold's December 31, 2019, balance sheet relative to the lease arrangement? (Round answers to O decimal places, e.g. 58,971.) MARIGOLD STEEL COMPANY Balance Sheet Assets Liabilities Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS Question Attempts: 1 of 12 used SAVE FOR LATER