The following facts pertain to a non-cancelable lease agreement between Wildhorse Leasing Company and Windsor Company, a lessee. May 1, 2020 $17.225.30 $4,000 5 years Commencement date Annual lease payment due at the beginning of each year, beginning with May 1, 2020 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, 2020 Lessor's implicit rate Lessee's incremental borrowing rate 10 years $55,000 $77,000 8 % 8 % The collectibility of the lease payments by Wildhorse is probable. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Prepare a lease amortization schedule for Windsor for the 5-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.) WINDSOR COMPANY (Lessee) Lease Amortization Schedule je Payment Plus BPO Interest on Liability Reduction of Lease Liability Lease Liability $ $ 77000 17225.3 17225.3 59774.70 17225.3 4781.98 12443.32 47331.38 17225.3 3786.51 13438.79 3389259 17225.3 2711.41 14513.89 19378.69 17225.3 1550.30 15675 3703.69 4000 296.30 3703.70 0.00 90126.5 $ $ 13126.5 $ 77000 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. Windsor's 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, eg. 5,275.15. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 5/1/20 Right-of-Use Asset 77000 Lease Liability (To record the lease) 5/1/20 Lease Liability 17225.30 Cash 1722 (To record the first lease payment) 12/31/20 Interest Expense 3187.98 Lease Liability 31 (To record interest expense) 12/31/20 Amortization Expense Right-of-Use Asset (To record amortization of the right-of-use asset) 1/1/21 Lease Liability Interest Expense 5/1/21 > Lease Liability 12443.32 Interest Expense 4781.98 Cash 1722 12/31/21 Lease Liability 15 12/31/21 Lease Liability 15 (To record interest expense) HOME 12/31/21 Amortization Expense Right-of-Use Asset (To record amortization of the right-of-use asset)