The following facts pertain to a noncancelable lease agreement between Monty Leasing Company and Flounder Company, a lessee.

Inception date:		May 1, 2017
Annual lease payment due at the beginning of
each year, beginning with May 1, 2017		$21,751.90
Bargain-purchase option price at end of lease term		$3,700
Lease term		5	years
Economic life of leased equipment		10	years
Lessors cost		$67,000
Fair value of asset at May 1, 2017		$93,000
Lessors implicit rate		10	%
Lessees incremental borrowing rate		10	%

The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs

Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2017, 2018, and 2019. The lessors accounting period ends on December 31. Reversing entries are not used by Monty.