Teal Mountain AG leases an automobile with a fair value of 27,782 from Simon Motors, on the following terms. 1. Non-cancelable term of 50 months. 2. Rental of 600 per month (at the beginning of each month). (The present value at 0.5% per month is 26,618.) 3. Teal Mountain guarantees a residual value of 1,300 (the present value at 0.5% per month is 623 ). Teal Mountain expects the probable residual value to be 1,300 at the end of the lease term. 4. Estimated economic life of the automobile is 60 months. 5. Teal Mountain's incremental borrowing rate is 6% a year ( 0.5% a month). Simon's implicit rate is unknown. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Record the first month's lease payment (at commencement of the lease). (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)