The following facts pertain to a non-cancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee. May 1, 2020 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 $20,471.94 $4,000 5 years 10 years $65,000 $91,000 8 % 8 % The collectibility of the lease payments by Mooney is probable. Click here to view factor tables. Your answer is correct. Compute the amount of the lease receivable at commencement of the lease. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answer to 2 decimal places, e.g. 5,275.15.) Lease receivable at commencement $ $ 91000 eTextbook and Media List of Accounts Your answer is correct. Prepare a lease amortization schedule for Mooney for the 5-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.) MOONEY LEASING COMPANY (Lessor) Lease Amortization Schedule Interest on Lease Recovery of Lease Receivable Receivable Annual Lease Payment Plus BPO Date 5/1/20 $ i $ i $ 5/1/20 20471.94 i 20471.94 5/1/21 20471.94 5642.24 14829.7 5/1/22 20471.94 4455.87 16016.07 5/1/23 20471.94 3174.58 17297.36 5/1/24 20471.94 1790.79 18681.15 4/30/25 4000 296.3 3703.7 $ 106359.70 $ 15359.79 $ 90999.92 e Textbook and Media List of Accounts Your answer is partially correct. 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 2020 and 2021. The lessor's accounting period ends on December 31. Reversing entries are not used by Mooney. (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.) Date Account Titles and Explanation Debit Credit 5/1/20 Leased Equipment 91000 Lease Liability 65000 Lease Liability Cash (To record the lease) 12/31/20 Interest Expense 20471.94 Lease Liability 21 (To record lease payment) 5/1/21 Amortization Expense 3761.49 Right-of-Use Asset 5/1/21 Interest Expense Lease Liability Cash 12/31/21