Rodgers Corporation agrees on January 1, 2020, to lease equipment from Packers, Inc. for 3 years. The lease calls for annual lease payments of $15,000 at the beginning of each year. The lease does not transfer ownership contain a bargain purchase option, and is not a specialized asset. In addition, the economic life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment. Prepare Rodgers' journal entries on January 1, 2020 (commencement of the operating lease), and on December 31, 2020. Assume the implicit rate used by the lessor is 7%, and this is known to Rodgers. Journal Entry to Record Initial Lease for Rodgers Corp. -- 1/1/20 Accounts Debit Credit Select) V | Select Select Select Journal Entry for First Lease Payment by Rodgers Corp. -- 1/1/20 Accounts Debit Credit Select) [Select) Select] > Select] Journal Entry to Record Accrual of Lease Interest Expense by Rodgers Corp -- 12/31/20 Accounts Debit Credit Select] V [Select Select] > Select] Select) Select]