Shamrock 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 6%; Shamrock's incremental borrowing rate is 8%. Shamrock is unaware of the rate being used by the lessor. At the end of the lease, Shamrock 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. Shamrock uses the straight-line method of depreciation on similar owned equipment. Click here to view factor tables Your answer is partially correct. Try again. Prepare the journal entries, that Shamrock 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 O 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.) Date Account Titles and Explanation Credit December 31, 2017 Leased Asset 1616645 1616645 Lease Liability (To record leased asset and related liability.) Lease Liability 56000 Cash 56000 To record the first rental payment.) SHOW LIST OF ACCOUNTS Your answer is partially correct. Try again. repare the journal entries, that Shamrock should record on December 31, 2018. (Credit account titles are automatically indented when amount is entered. Do ot indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2018 Amortization Expense 34497 Right-of-Use Asset (To record amortization.) Interest Expense 34497 14838 41162 Lease Liability 56000 Cash To record annual payment on lease liability.) SHOW LIST OF ACCOUNTS Prepare the journal entries, that Shamrock should record on December 31, 2019. (Credit account titles are automatically indented when amount is entered. D not indent manually. If no entry is required, select '"No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places e 58,971.) Date Account Titles and Explanation Debit Credit December 31, 2019 Amortization Expense 34497 Right-of-Use Asset 34497 (To record annual amortization on leased assets.) Interest Expense 11545 Lease Liability 44455 56000 Cash To record annual payment on lease liability.) SHOW LIST OF ACCOUNTS What amounts would appear on Shamrock's December 31, 2019, balance sheet relative to the lease arrangem 58,971.) SHAMROCK STEEL COMPANY Balance Sheet December 31, 2019 Assets Total Current Assets 172486 Accumulated Depreciation-Leased Equipment Liabilities 51852 Lease Liability Long-term Liabilities 48011 Lease Liability Click if you would like to Show Work for this question: Open Show Work Table 6.1 FUTURE VALUE OF 1 (FUTURE VALUE OF A SINGLE SUM) n,1 5% 6% (n) Periods 2% 24% 3% 4% 1.02000 1.02500 1.03000 1.04000 1.05000 .06000 2 1.04040 1.05063 1.06090 1.08160 1.10250 1.12360 .0612 1.07689 1.09273 .12486 15763 1.19102 1.08243 .1038 .1255 1.16986 1.21551 .26248 1.10408 1.13141 1.15927 121665 .27628 133823 6 1.12616 1.15969 1.19405 1.26532 34010 1.41852 7 1.14869 1.18869 1.22987 1.31593 140710 50363 1.17166 1.21840 .26677 1.36857 1.47746 .59385 9 1.19509 1.24886 1.30477 1.4233 55133 .68948 1.21899 1.28008 1.34392 1.48024 .62889 1.79085 1.24337 1.31209 1.38423 1.53945 1.71034 1.89830 4 10 8% 1.08000 1.09000 .10000 1.11000 1.12000 .15000 1.16640 1.18810 .21000 .23210 1.25440 1.32250 2 125971 1.29503 1.33100 1.36763 1.40493 1.52088 3 1.36049 1.41158 1.46410 1.51807 .57352 1.7490 4 1.46933 1.53862 .6105 .68506 1.76234 2.01136 5 1.58687 1.67710 77156 .8704 1.97382 2.31306 6 1.71382 1.82804 .94872 2.07616 2.21068 2.66002 7 1.85093 1.99256 2.14359 2.30454 2.47596 3.05902 8 99900 2.17189 2.35795 2.55803 2.77308 3.51788 9 2.15892 2.36736 2.59374 2.83942 3.10585 4.04556 10 2.33164 2.58043 2.85312 3.15176 3.47855 4.65239 11 2.51817 2.81267 3.13843 3.49845 3.89598 5.35025 12 9% 10% 11% 12% 15% (n) Periods Table 6.2 PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) (n) Periods 2% 98039 .97561 .97087 .96154 .95238 96117 .95181 .94260 .92456 .90703 94232 .92860 .91514 .88900 .86384 92385 .90595 .88849 .85480 .82270 90573 .88385 .86261 .82193 .78353 88797 .86230 .83748 .79031 .74622 87056 .84127 .81309 .75992 .71068 85349 .82075 .78941 .73069 .67684 83676 .80073 .76642 .70259 .64461 82035 .78120 .74409 .67556 .61391 24% 3% 4% 5% 6% 94340 89000 83962 79209 74726 70496 66506 62741 59190 55839 4 10 9% 10% 11% 12% 15% (n) Periods 92593 .91743 .90909 .90090 .89286 .869571 85734 .84168 82645 .81162 .79719 .75614 2 79383 .77218 .75132 .73119 .71178 .65752 3 73503 .70843 .68301 .65873 .63552 .5717:5 .68058 64993 .62092 .59345 .56743 .497185 .63017 .59627 .56447 .53464 .50663 43233 6 58349 .54703 .51316 .48166 45235 .375947 54027 .50187 .46651 43393 40388 .326908 .50025 .46043 42410 .39092 .36061 .284269 46319 .42241 38554 .35218 .32197 .2471910 42888 38753 .35049 .31728 .28748 .2149411 39711 35554 .31863 .28584 .25668 .18691 12 4 Table 6.3 FUTURE VALUE OF AN ORDINARY ANNUITY OF 5% (n) Periods 2% 1.00000 1.00000 1.00000 .00000 .00000 1.00000 2.02000 2.02500 2.03000 2.04000 2.05000 2.06000 .06040 3.07563 3.09090 3.12160 3.15250 3.18360 4.12161 4.15252 4.18363 4.24646 4.31013 4.37462 5.20404 5.25633 5.30914 5.41632 5.525635.63709 6.30812 6.38774 6.46841 6.63298 6.80191 6.97532 7.43428 7.54743 7.66246 7.89829 8.14201 8.39384 8.58297 8.73612 8.89234 9.21423 9.5491 9.89747 9.75463 9.95452 10.15911 10.58280 11.02656 11.49132 2 % 3% 6% 4 10 10.94972 11.20338 11.46338 12.00611 2.57789 13.18079 8% 10% 11% 9% 12% 15% (n) Periods 1.00000 .00000 1.00000 1.00000 1.00000 1.00000 2.08000 2.09000 2.10000 2.11000 2.12000 2.15000 3.24640 3.27810 3.31000 3.34210 3.37440 3.47250 4.50611 4.57313 4.64100 4.70973 4.779334.99338 5.86660 5.98471 6.10510 6.22780 6.35285 6.74238 7.33592 7.52334 7.71561 7.91286 8.115198.75374 8.92280 9.20044 9.48717 9.7832710.08901 11.06680 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372 16.64549 17.56029 18.53117 19.56143 20.65458 24.34928 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167 4 10 12 Table 6.4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (n) Periods 2% 24% 3% 4% 5% 6% 98039.9756197087.96154 .9523894340 1.94156 1.92742 1.91347 1.88609 .8594 1.83339 3 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 4 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 5 4.71346 4.645834.57971 4.45182 4.32948 4.21236 6 5.60143 5.50813 5.41719 5.24214 5.07569 4.9173 7 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 8 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 9 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 10 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 8% 9% 10% 11% 12% 15% (n) Periods 92593.91743 .90909 90090 89286 .86957 1.78326 1.75911 1.73554 1.71252 1.69005 .62571 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 3.992713.88965 3.79079 3.69590 3.60478 3.35216 4.622884.48592 4.35526 4.23054 4.11141 3.78448 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 4 10 12 Table 6.5 PRESENT VALUE OF AN ANNUITY DUE OF 1 PVF-AD14 (n) Periods 2% 24% 3% 4% 5% 6% 1.00000 1.00000 .00000 .00000 1.00000 .00000 1.98039 1.97561 .97087 1.96154 1.95238 .94340 3 2.94156 2.92742 2.91347 2.88609 2.85941 2.83339 4 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 5 4.80773 4.76197 4.71710 4.62990 4.545954.4651 6 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 7 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 8 7.47199 7.34939 7.23028 7.00205 6.78637 6.58238 9 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 10 9.16224 8.97087 8.78611 8.435338.10782 7.80169 8% 1.00000 1.00000 1.00000 1.00000 1.00000 1.000001 .92593 1.91743 1.90909 1.90090 1.89286 1.86957 2 2.78326 2.75911 2.73554 2.71252 2.69005 2.62571 3 3.57710 3.53130 3.48685 3.443713.40183 3.28323 4 4.31213 4.23972 4.16986 4.10245 4.03735 3.85498 5 4.992714.88965 4.79079 4.69590 4.60478 4.35216 5.62288 5.48592 5.35526 5.23054 5.11141 4.78448 7 6.20637 6.03295 5.86842 5.71220 5.56376 5.16042 8 6.74664 6.53482 6.33493 6.14612 5.96764 5.48732 9 7.24689 6.99525 6.75902 6.53705 6.32825 5.77158 10 7.71008 7.41766 7.14457 6.88923 6.65022 6.01877 11 8.13896 7.80519 7.49506 7.20652 6.93770 6.23371 12 9% 10% 11% 12% 15% (n) Periods