The following facts pertain to a non-cancelable lease agreement between Blossom Leasing Company and Kingbird Company, a lessee. Commencement date May 1, 2020 Annual lease payment due at the beginning of each year, beginning with May 1, 2020 $19,656.69 Bargain purchase option price at end of lease term $7,000 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $65,000 Fair value of asset at May 1, 2020 $93,000 Lessor's implicit rate 6 % Lessee's incremental borrowing rate 6 % is partially correct Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2020 and 2021. Kingbird's annual accounting period ends on December 31. Reversing entries are used by Kingbird. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, eg. 5,275.15. Record journal entries in the order presented in the problem.) Date 5/1/20 5/1/20 Account Titles and Explanation (To record the lease) Debit Credit 12/31/20 (To record the first lease payment) Interest Expense 12/31/20 1/1/21 (To record interest expense) Amortization Expense Right-of-Use Asset (To record amortization of the right-of-use asset) 5/1/21 12/31/21 Interest Expense 12/31/21 v (To record interest expense) Amortization Expense Right-of-Use Asset (To record amortization of the right-of-use asset)