Teal Mountain enters into an agreement with Traveler plc to lease a car on December 31, 2021. The following information relates to this agreement. 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. 2. The fair value of the car was 16,080 at commencement of the lease. 3. Annual payments are made on December 31 at the end of each year of the lease, beginning December 31,2022 . The first payment is 5,952.50, with each payment increasing by a constant rate of 5% from the previous payment (i.e., the second payment will be 6,250.13 and the third and final payment will be 6,562.64). 4. Teal Mountain' incremental borrowing rate is 8%. The rate implicit in the lease is unknown. 5. Teal Mountain uses straight-line depreciation for all similar cars. Prepare Teal Mountain' journal entries for 2021, 2022, and 2023. (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.8. 5,275.25. Record journal entries in the order presented in the problem.)