The following facts pertain to a non-cancelable lease agreement between Wildhorse Leasing Company and Windsor Company, a lessee. Commencement date May 1, 2020 Annual lease payment due at the beginning of each year, beginning with May 1, 2020 $ 17,225.30 Bargain purchase option price at end of lease term $ 4,000 Lease term 5 years Economic life of leased equipment 10 years Lessors cost $ 55,000 Fair value of asset at May 1, 2020 $ 77,000 Lessors implicit rate 8 % Lessees incremental borrowing rate 8 % The collectibility of the lease payments by Wildhorse is probable.

Prepare a lease amortization schedule for Windsor for the 5-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.)

Prepare the journal entries on the lessees 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. Windsors annual accounting period ends on December 31. Reversing entries are used by Windsor. (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.)