The following facts pertain to a noncancelable lease agreement between Faldo Leasing Company and Vance Company, a lessee. January 1, 2017 $ 124,798 Inception date Annual lease payment due at the beginning of each year, beginning with January 1, 2017 Residual value of equipment at end of lease term, guaranteed by the lessee Lease term Economic life of leased equipment Fair value of asset at January 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate $50,000 6 years 6 years $600,000 12 % 12 % The lessee assumes responsibility for all executory costs, which are expected to amount to $5,000 per year. The asset will revert to the lessor at the end of the lease term. The lessee has guaranteed the lessor a residual value of $50,000. The lessee uses the straight-line depreciation method for all equipment. Click here to view factor tables Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Roun final answer to 0 decimal places e.g. 58,971.) VANCE COMPANY (Lessee) Lease Amortization Schedule Annual Lease Interest on Reduction of Lease Date Payment Plus GRV Liability Liability Lease Liability 1/1/17 600000 1/1/17 124798 124798 475202 1/1/18 124798 57024 67774 407428 1/1/19 124798 48891 75907 331521 1/1/20 124798 39783 85015 246506 1/1/21 124798 29581 95217 151289 1/1/22 124798 18155 106643 44646 12/31/22 50000 5358 44646 798788 $ 198792 600000 $ Prepare all of the journal entries for the lessee for 2017 and 2018 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 and reversing entries are used when appropriate. All executory costs are paid as incurred. (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 o for the amounts. Round answers to O decimal places e.g. 58,971.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 (To record the lease.) (To record first lease payment.) During 2017 Dec. 31, 2017 (To record interest.) (To record depreciation.) Jan. 1, 2018 (To reverse the December 31 entry.) (To record the second lease payment.) During 2018 Dec. 31, 2018 (To record interest.) (To record depreciation.)