The following facts pertain to a non-cancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee. Commencement date Annual lease payment due at the beginning of May 1, 2017 $20,471.94 $4,000 each year, beginning with May 1, 2017 Bargain purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate 5 years 10 years $65,000 $91,000 8% 8% The collectibility of the lease payments by Mooney is probable. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Your answer is correct. Discuss the nature of this lease to Rode. The nature of this lease to Rode is a inance lease Attempts: 1 of 5 used Your answer is correct. Discuss the nature of this lease to Mooney The nature of this lease to Mooney is a sales lease Attempts: 1 of 5 used Your answer is partially correct. Try again. Prepare a lease amortization schedule for Rode for the 5-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.) RODE COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Plus Interest on Liability Reduction of Lease Liability Date Lease Liability $2100 20471 20472 70528 20471 5242 1483 55698 20471 3342 17130 38568 5/1/20 20471 2314 18158 20410 5/1/21 20471 1225 19247 1163 4/30/22 70 70 1233 102360 12593 89767 Attempts: 5 of 5 used Your answer is partially correct. Try again 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 2017 and 2018. Rode's annual accounting period ends on December 31. Reversing entries are used by Rode. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15.) Date Account Tites and Explanation Debit Credit Lease Expense 100 ase Liabili 100 To record the lease) ase Liabili 20471.94 0471 as To record the first lease payment) Interest Expens 2957 Interest Payable 2957 To record interest expense) Depreciation Expense 12133 Accumulated Depreciation-Capital Leases 12133 To record amortization of the right-of-use asset) To record interest expense) (To record amortization of the right-of-use asset) Attempts: 1 of 5 used