Problem 21A-3 a-d (Part Level Submission) Culver Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments of $57,000 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%; Oulveris incremental borrowing rate is 8%. Culver is unaware of the rate being used by the lessor. At the end of the lease, Culver 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. Culver uses the straight-line method of depreciation on similar owned equipment. Click here to view factor tables CULVER STEEL COMPANY Balance Sheet December 31, 2019 Assets Non-current Assets Tright-of-use Asset , Liabilities current liabilities Lease Liability 105617 Long-term Liabilities Lease Liability CALCULATOR FULL SCREEN PRINTER VERSION BACK Culver Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments of $57,000 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%; Culver's incremental borrowing rate is 99. Glveris unaware of the rate being used by the lessor. At the end of the lease, Cilver has the option to buy the equipment for $5,000, considerably below is estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Culver uses the straight line method of depreciation on similar owned equipment. Click here to view factor tables (a) Your answer is correct. Prepare the journal entries, that Culver should record on December 31, 2017. Credit countries 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 for the amounts. Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answers to decimal places, e., 58,971.) Credit Date Account Titles and Explanation December 31, 2017 Right-ofUse Asset 249194 249194 | Lease Liability (To record leased and related ) Lease ability Cash (To record the first rental t .) Your answer is correct. Prepare the journal entries, that Culver should record on December 31, 2018. (Credit account titles are automatically indented when amo manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation December 31, 2018 Amortization Expense 35599 D 35599 Right-of-Use Asset (To record amortization.) Lease Liability Interest Expense Cash 57000 (To record annual payment on lease lability.) SHOW LIST OF ACCOUNTS Prepare the lournal entries, that Culver should record on December 31, 2019. (Credit account titles are automatically indented when amount is en manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to O decimal places Date Account Titles and Explanation Debit Credit December 31, 2019 Amortization Expense 10 35599 35599 Right-of-Use Asset (To record annual amortization on leased assets.) Tinterest Expense Lease Liability 57000 Cash (To record annual payment on lease liability.)