Skysong Manufacturing Ltd. has signed a lease agreement with LPN Leasing Inc. to lease some specialized manufacturing equipment. The terms of the lease are as follows: The lease is for 5 years commencing January 1, 2020. Skysong must pay LPN $55,657 on January 1 of each year, beginning in 2020. Equipment of this type normally has an economic life of 6 years. LPN has concluded, based on its review of Skysong's financial statements, that there is no unusual credit risk in this situation. LPN will not incur any further costs with regard to this lease. LPN purchases this equipment directly from the manufacturer at a cost of $210,014, and normally sells the equipment for $258,514. Skysong's borrowing rate is 7%. LPN's implied interest rate is 6%, which is known to Skysong at the time of negotiating the lease. Skysong uses the straight-line method to depreciate similar equipment Both Skysong and LPN have calendar fiscal years (year end December 31), and follow ASPE. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Skysong will classify this as a capital lease Attempts: 2 of 2 used Part 2 Prepare a lease amortization schedule for this lease. (Round answers to decimal places, e.g. 5,275.) Date Payment Interest Principal Bala January 1, 2020 January 1, 2020 January 1, 2021 January 1, 2022 January 1, 2023 Prepare the journal entries on Skysong Manufacturing's books on January 1, 2020. (Credit account titles are automatically inder when the 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.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020