Skysong enters into an agreement with Traveler Inc. to lease a car on December 31, 2019. The following information relates to this agreement. C 1. The term of the non-cancelable lease is 3 years with no renewal or bargain purchase option. The remaining economic life of the car is 3 years, and it is expected to have no residual value at the end of the lease term A 2. The fair value of the car was $14,100 at commencement of the lease. Q 3. 4. Annual payments are required to be made on December 31 at the end of each year of the lease, beginning December 31, 2020. The first payment is to be of an amount of $5,148.50, with each payment increasing by a constant rate of 5% from the previous payment (i.e.. the second payment will be $5.519.36 and the third and final payment will be $5,795.30). Skysong incremental borrowing rate is 8%. The rate implicit in the lease is unknown. 5. Skysong uses straight-line depreciation for all similar cars. AC Qu Acce Que Acco Prepare Skysong journal entries for 2019, 2020, and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 2 decimal places, e.g. 5,275.25. Record journal entries in the order presented in the problem.) Click here to view factor tables. Date Account Titles and Explanation 12/31/19 Right-of-Use Asset Lease Liability 12/31/20 Interest Expense Lease Liability 12/31/20 Cash (To record interest expense) Amortization Expense Right-of-Use Asset Debit 14100 1128 4020.5 14100 Credit 1410 5148.50 14100 (To record amortization of the right-of-use asset) 12/31/21 v Interest Expense 12/31/21 Lease Liability Cash (To record interest expense) Amortization Expense Right-of-Use Asset (To record amortization of the right-of-use asset) 14100 5519.30 14100