Short Problem. Hughey Co. as lessee records a five-year lease of machinery with guaranteed residual value on January 1, 2011. The annual lease payments of $400,000 are made at the end of each year. The present value factor for an ordinary annuity at 10% and 5 years is 3.79079. The guaranteed residual value at the end of the lease term is $120,000 and Hughey Co. expect the leased machinery to have an actual residual value of 100,000. The present value factor for a single sum at 10% and 5 years is 0.62092. The machine reverts to the lessor at the end of the lease term. Hughey uses the effective-interest method and straight-line amortization. Hughey classifies the lease as a finance lease. Please round your calculations to the nearest dollar. (a) Prepare a lease amortization schedule. (b) Prepare all of the lessee's journal entries for 2011. (c) Prepare all of the lessee's journal entries for 2015, assuming that the machine is worth $60,000 at the end of the lease term when it is returned to the lessor. Reduction In Liability Lease Llability 3) Prepare alene amortization schedule for the lessee 4 Date Lease Payment Interest Expense (10%) 1/1/11 E 12/31/11 7 12/31/12 12/31/13 9 12/31/14 10 12/31/15 11 12 Prepare all of the lessee's journal entries for 2011 13 1/1/11 Righof Al 14 Lease Liability 15 16 12/31/11 Amortization Vixpense 17 Right of Use Asset 18 19 Lu Liability 20 Inter Expens: 21 22 23 24 25 (c) Prepare all of the lessee's journal entries for 2015. 12/31/15 Amortization Expense 22 Right-of Use Asset 28 29 Lu Libily 30 Interest Expens 31 (rain an Finance 32 33 34 35 26 36