Problem 21A-3 a-d Pronghorn 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 696, Pronghorn's incremental borrowing rate is 8%. Pronghorn is unaware of the rate being used by the lessor. At the end of the lease, Pronghorn 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. Pronghorn uses the straight-line method of depreciation on similar owned equipment. Click here to view factor tables Prepare the journal entries, that Pronghorn 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 0 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 Date December 31, 2017 To record leased asset and related liability.) To record the first rental payment.) Prepare the journal entries, that Pronghorn should record on December 31, 2018. (Credit account titles manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the am Date December 31, 2018 Account Titles and Explanation Debit Credit To record amortization.) To record annual payment on lease liability.) Prepare the journal entries, that Pronghorn should record on December 31, 2019. (Credit account titles a manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amo Account Titles and Explanation Debit Date Credit December 31, 2019 To record annual amortization on leased assets.) (To record annual payment on lease liability.) What amounts would appear on Pronghorn's December 31, 2019, balance sheet relative to the lease arrangement? PRONGHORN STEEL COMPANY Balance Sheet Asset Liabilities Click if you would like to Show Work for this question: Open Show Work