Required information The following information applies to the questions displayed below.) On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a finance lease. The lease requires three $17.400 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 2). The present value of the three annual lease payments is $49,400, using a 5780% interest rate. The lease payment schedule follows: Beginning Balance of Lease Liability $49, 400 32,000 16,450 Payments (C) Debit Lease Liability (D) - (B) $17,400 15,550 16,450 $49, 400 (B) Debit Interest on Lease Liability 6.003% X (A) S 0 1,850 951 $ 2,800 Date Jan 1 Year 1 Dec 31, Year 1 Dec 31 Year 2 (E) Ending Balance of Lease Liability (A) - (0) $32,000 16,450 (D) Credit Cash Lease Payment $17, 400 17,400 17, 400 $52,200 4. Prepare the December 31 journal entry to record the $17.400 cash lease payment at the end of (a) Year 1 and (b) Year 2 View transaction list Journal entry worksheet 1 View transaction list Journal entry worksheet 2 Record lease payment on December 31 of the first year Note: Enter debits before credits Date General Journal Debit Credit Year 1 Dec 31 Amortization expense Accumulated amortization-Right-of-Use Asset Record entry Clear entry View general journal View transaction list Journal entry worksheet