The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Martinez Company, a lessee. Commencement date January 1, Annual lease payment due at the beginning of each year, beginning with January 1, $105,757 Residual value of equipment at end of lease term, guaranteed by the lessee $46,000 Expected residual value of equipment at end of lease term $41,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, $557,000 Lessors implicit rate 8 % Lessees incremental borrowing rate 8 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment.

Please help, I got all of these wrong..

The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Martinez Company, a lessee. January 1, $105,757 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 Lease term Economic life of leased equipment Fair value of asset at January 1, Lessor's implicit rate Lessee's incremental borrowing rate $46,000 $41,000 6 years 6 years $557,000 8 % 8 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. 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 0 decimal places e.g. 5,275.) MARTINEZ COMPANY (Lessee) Lease Amortization Schedule Interest on Reduction of Lease Liability Liability Annual Lease Payment Plus GRV Date Lease Liability 1/1/20 557002 $ 1/1/20 105757 105757 451245 X X 1/1/21 105757 36100 69657 381587 1/1/22 105757 30527 75230 306357 X x 1/1/23 105757 24509 81248 225109 1/1/24 105757 18009 87748 137361 X X 1/1/25 105757 10989 94768 42593 x 12/31/26 46000 3407 42593 0 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 o 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 Jan. 1, 2020 Right-of-Use Asset 557002 Lease Liability 557002 (To record the lease.) Jan 1, 2020 Lease Liability 105757 Cash 105757 (To record first lease payment.) Dec. 31, 2021 Interest Expense 36100 Lease Liability 36100 (To record interest.) Dec 31, 2020 Amortization Expense 92834 92834 Right-of-Use Asset (To record amortization.) Dec. 31, 2021 TLease Liability 105757 Cash 105757 (To record second lease payment.) Dec. 31, 2021 Interest Expense 30527 30527 Lease Liability (To record interest.) X Dec. 31, 2021 v Amortization Expense 92834 X Right-of-Use Asset 92834 (To record amortization.) Suppose Martinez received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? X Right-of-use asset 562002 X Lease Liability 557002 What if Martinez prepaid rent of $5,000 to Faldo? X Right-of-use asset Lease Liability The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Martinez Company, a lessee. January 1, $105,757 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 Lease term Economic life of leased equipment Fair value of asset at January 1, Lessor's implicit rate Lessee's incremental borrowing rate $46,000 $41,000 6 years 6 years $557,000 8 % 8 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. 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 0 decimal places e.g. 5,275.) MARTINEZ COMPANY (Lessee) Lease Amortization Schedule Interest on Reduction of Lease Liability Liability Annual Lease Payment Plus GRV Date Lease Liability 1/1/20 557002 $ 1/1/20 105757 105757 451245 X X 1/1/21 105757 36100 69657 381587 1/1/22 105757 30527 75230 306357 X x 1/1/23 105757 24509 81248 225109 1/1/24 105757 18009 87748 137361 X X 1/1/25 105757 10989 94768 42593 x 12/31/26 46000 3407 42593 0 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 o 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 Jan. 1, 2020 Right-of-Use Asset 557002 Lease Liability 557002 (To record the lease.) Jan 1, 2020 Lease Liability 105757 Cash 105757 (To record first lease payment.) Dec. 31, 2021 Interest Expense 36100 Lease Liability 36100 (To record interest.) Dec 31, 2020 Amortization Expense 92834 92834 Right-of-Use Asset (To record amortization.) Dec. 31, 2021 TLease Liability 105757 Cash 105757 (To record second lease payment.) Dec. 31, 2021 Interest Expense 30527 30527 Lease Liability (To record interest.) X Dec. 31, 2021 v Amortization Expense 92834 X Right-of-Use Asset 92834 (To record amortization.) Suppose Martinez received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? X Right-of-use asset 562002 X Lease Liability 557002 What if Martinez prepaid rent of $5,000 to Faldo? X Right-of-use asset Lease Liability