The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Wildhorse Company, a lessee.

Commencement date		January 1,
Annual lease payment due at the beginning of each year, beginning with January 1,		$113,055
Residual value of equipment at end of lease term, guaranteed by the lessee		$54,000
Expected residual value of equipment at end of lease term		$49,000
Lease term		6	years
Economic life of leased equipment		6	years
Fair value of asset at January 1,		$585,000
Lessors implicit rate		9	%
Lessees incremental borrowing rate		9	%

The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment.

Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 5,275.) WILDHORSE COMPANY (Lessee) Lease Amortization Schedule Annual Lease Interest on Reduction of Lease Payment Plus GRY Liability Liability Lease Liability 0 $ 0 $ 0 $ 653572 113055 0 113055 520517 113055 46847 86208 434309 113055 39088 93967 340341 113055 30631 102424 237917 113055 21413 111642 126275 113055 11365 121690 4584 5000 416 4584 0 803330 $ 149758 $ 653572 Date Account Titles and Explanation Debit Credit (To record the lease.) V (To record first lease payment.) (To record interest.) V (To record amortization.) (To record second lease payment.) (To record interest.)