Skysong Corporation recorded a right-of-use asset for $249,000 as a result of a finance lease on December 31, 2019. Skysong's incremental borrowing rate is 11%, and the implicit rate of the lessor was not known at the commencement of the lease. Skysong made the first lease payment of $53,025 on on December 31, 2019. The lease requires 6 annual payments. The equipment has a useful life of 6 years with no residual value.

Prepare Skysong's December 31, 2020, entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.)

Date Account Titles and Explanation Debit Credit

December 31, 2020 enter an account title to record interest expense enter a debit amount enter a credit amount

enter an account title to record interest expense enter a debit amount enter a credit amount

enter an account title to record interest expense enter a debit amount enter a credit amount

(To record interest expense)

December 31, 2020 enter an account title to record amortization of the right-of-use asset enter a debit amount enter a credit amount

enter an account title to record amortization of the right-of-use asset enter a debit amount enter a credit amount

(To record amortization of the right-of-use asset)