The following facts pertain to a non-cancelable lease agreement betweenTamariskLeasing Company andCarla VistaCompany, a lessee.

Commencement dateMay 1, 2020Annual lease payment due at the beginning ofeach year, beginning with May 1, 2020$19,656.69Bargain purchase option price at end of lease term$7,000Lease term5yearsEconomic life of leased equipment10yearsLessor's cost$65,000Fair value of asset at May 1, 2020$93,000Lessor's implicit rate6%Lessee's incremental borrowing rate6%

The collectibility of the lease payments byTamariskis probable.

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 byTamarisk.(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.)