Show Attempt History Current Attempt in Progress 1 2 Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Marin Company. The following Information relates to this agreement The term of the non-cancelable tease is 3 years with no renewal option The equipment has an estimated economic life of years The fair value of the asset at January 1, 2020, is 562.000 The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $4,000, none of which is guaranteed. The agreement requires equal annual rental payments of $20.250 to the lessor, beginning on January 1, 2020 The lessee's incremental borrowing ratels % The lessor's implicit rate s 4% and is unknown to the lessee Marin uses the straight-line depreciation method for all equipment. 3. a 4 5. 6. Click here to view factor tables (For calculation purposes, use 5 decimal places as displayed in the factor table provided) Lease Amortization Schedule Interest on Llability Annual Lease Payment Date Reduction of Lease Liability 11/20 $ 1/1/20 20250 0 20250 1/1/21 20250 1883 18367 1/1/22 20250 964 19286 s 80750 $ 2847 57903 e Textbook and Media MARIN COMPANY (Lessee) Lease Amortization Schedule ial Lease ment Interest on Liability Reduction of Lease Llability Lease Liabllity s 57903 20250 o 20250 37653 20250 1883 18367 19286 20250 964 19286 0 60750 2847 $ 57903 e Textbook and Media Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31 Credit accounts are automatically indented when amount is entered. Do not Indent manually. Hound answers to decimal places, es 5.265. Recordjournal entries in the order presented in the problem) Account Titles and Explanation Debit Credit Right 57903 Lasery 37203 (To record the lease) To record lease payment) (To record interest one) To record amortiration of the Question 5 of 12 0.5/1 11! to record motion of the night-of-use et (To reverse interest experie) (To record lease payment) > (Te record interest expense)