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

Commencement date		January 1,
Annual lease payment due at the beginning of each year, beginning with January 1,		$119,947
Residual value of equipment at end of lease term, guaranteed by the lessee		$51,000
Expected residual value of equipment at end of lease term		$46,000
Lease term		6	years
Economic life of leased equipment		6	years
Fair value of asset at January 1,		$631,000
Lessors implicit rate		8	%
Lessees incremental borrowing rate		8	%

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.

RIVERBED COMPANY (Lessee) Lease Amortization Schedule Interest on Reduction of Lease Liability Liability Annual Lease Payment Plus GRV Date Lease Liability 1/1/20 1/1/20 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 12/31/26 Prepare all of the journal entries for the lessee for and to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (Credit account titles are automatically indented when 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. Round answers to o decimal places e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the lease.) (To record first lease payment.) (To record interest.) (To record amortization.) (To record second lease payment.) (To record interest.)