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The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Monty Company, a lessee. January 1 $104,957 Commencement date Annual lease

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The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Monty Company, a lessee. January 1 $104,957 Commencement date Annual lease payment due at the beginning of each year, beginning with January 1. Residual value of equipment at end of lease term guaranteed by the lessee Expected residual value of equipment at end of lease term $55,000 $50,000 Lease term 6 years 6 years Economic life of leased equipment Fair value of asset at January 1. Lessor's implicit rate $546,000 996 Lessee's incremental borrowing rate 9 % 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 o decimal places e.g. 5,275.) MONTY COMPANY (Lessee) Lease Amortization Schedule Annual Lease vyment Plus GRV Interest on Liability Reduction of Lease Liability Lease Liability $ $ i $ 516.184 104.957 104.957 411.227 104.95 37010 67.947 343.280 104,95 30 895 74062 269.218 104.957 30,895 74062 269.218 104.957 24.230 80.727 188.491 104,957 16.964 87.993 100.498 104957 9.045 95.912 4586 5.000 414 4.586 634 742 118 558 516, 184 | 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 for the amounts. Round answers to 0 decimal places e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 1.2020 Leased Equipment 516,184 Lease Liability 516,184 (To record the lease.) To reron first lose nayment) (To record the lease.) (To record first lease payment.) (To record interest.) (To record second lease payment.) (To record interest.) (To record amortization.)

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