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Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Skysong Company. The following information relates to this agreement.

1.		The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years.
2.		The fair value of the asset at January 1, 2020, is $56,000.
3.		The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $3,000, none of which is guaranteed.
4.		The agreement requires equal annual rental payments of $18,479 to the lessor, beginning on January 1, 2020.
5.		The lessees incremental borrowing rate is 5%. The lessors implicit rate is 4% and is unknown to the lessee.
6.		Skysong uses the straight-line depreciation method for all equipment.

Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

(a)

Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.)

SKYSONG COMPANY (Lessee) Lease Amortization Schedule
Date		Annual Lease Payment		Interest on Liability		Reduction of Lease Liability		Lease Liability
1/1/20		0		0		0		$enter a dollar amount
1/1/20		enter a dollar amount		0		enter a dollar amount		enter a dollar amount
1/1/21		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
1/1/22		enter a dollar amount		enter a dollar amount		enter a dollar amount		0
		$enter a total amount for this column		$enter a total amount for this column		$enter a total amount for this column