Question 2 0.64/4 View Policies Show Attempt History Current Attempt in Progress - Your answer is partially correct. Oriole Company leases a building to Walsh, Inc. on January 1, 2020. The following facts pertain to the lease agreement 1. The lease term is 5 years, with equal annual rental payments of $3,937 at the beginning of each year. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building has a fair value of $19.500, a book value to Oriole of $12,500, and a useful life of 6 years. 4. At the end of the lease term, Oriole and Walsh expect there to be an unguaranteed residual value of $3,125. 5. Oriole wants to earn a return of 7% on the lease, and collectibility of the payments is probable. This rate is known by Walsh Click here to view factor tables. (b) Using the original facts of the lease, show the journal entries to be made by both Oriole and Walsh in 2020. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to o decimal places, eg. 5,275. Credit account titles are umtially intenter when the amount is enterer antiventa Using the original facts of the lease, show the journal entries to be made by both Orlole and Walsh in 2020. (For calculation purposes, decimal places as displayed in the factor table provided and round final answers to decimal places, c..5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Oriole Journal Entries Account Titles and Explanation Debit Credit Date 1/1/20 Teace Rece Cost of Goods Sold Sales Revenue (To record the lease) (To record lease payment) Walsh's Journal Entries Debit Credit Date Account Titles and Explanation Walsh's Journal Entries Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease payment) (To record interest expense) (To record amortization of the right-of-use asset)