The following facts pertain to a non-cancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee. Commencement date May 1, 2020 Annual lease payment due at the beginning of each year, beginning with May 1, 2020 $20,471.94 Bargain purchase option price at end of lease term $4,000 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $65,000 Fair value of asset at May 1, 2020 $91,000 8 % Lessor's implicit rate Lessee's incremental borrowing rate 8 % The collectibility of the lease payments by Mooney is probable. (d) 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. 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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 20 Lease Expense 20 Lease Liability (To record the lease) Lease Liability Cash (To record the first lease payment) Debit Credit 20 (To record the lease) Lease Liability 1/21 Cash (To record the first lease payment) Interest Expense /20 Interest Payable (To record interest expense) Interest Expense Interest Payable (To record amortization of the right-of-use asset) Interest Expense Interest Payable