Use the following Information for questions 43-45 Rauch Incorporated leases a piece of equipment to Dover Corporation on January 1, 2020. The lease agreement called for annual rental payments of $4,500 at the beginning of each year of the 4-year lease. The first payment is to be made on January 1, 2020. The present value of the lease payments is $16,755, Rauch set the lease payments with the intent of earning a 5% return, and Dover is aware of this rate. The machine reverts back to the lessor at the end of the lease term (i.e., the lease does not transfer ownership of the underlying asset to the lessee), there is no purchase option for the lessee, and the asset is not of a specialized nature. Assume that this lease is properly classified by Dover as an operating lease. In questions 43-45, you will prepare all journal entries for Dover for this lease through December 31, 2020. D Question 43 wary 1, 2020: Record the lease. Credit Debit January 1, 2020 Record the lease O Account Right-of-Use Asset Lease Liability Debit Credit 16,755 16,755 O Account Debit Credit Lease Liability 16,755 Right-of-Use Asset 16,755 O Account Debit Credit Right-of-Use Asset 18,000 Lease Liability 18,000 O Account Debit Credit Lease Liability 18,000 Right-of-Use Asset 18,000 1 pts January 1, 2020 Record the first lease payment. O Account Right-of-Use Asset Debit Credit 4,189 Cash 4.19 O Account Debit Credit Cash 4,189 Right-of-Use Asset 4.189 O Account Debit Credit Lease Liability 4,500 Cash O Account Debit Cash 4,500 Lease Liability 4,500 Credit 4,500 1 December 31, 2020 Record lease expense for the first year of the lease, which is comprised of interest on the lease by and amortization of the right-of-use asset. Account Lease Expense Right-of-Use Asset Debit 4,500 Credit 4.500 Credit 3.887 613 Debit Credit 4,500 O Account Debit Lease Expense 4,500 Right-of-Use Asset Lease Liability O Account Right-of-Use Asset Lease Expense O Account Right-of-Use Asset Lease Liability Lease Expense Debit 3,887 6131 4,500 Credit 4,500 1M