Wildhorse Co. as lessee records a finance lease of machinery on January 1, 2021. The seven annual lease payments of $805,000 are made at the end of each year. The present value of the lease payments at 11% is $3,793,000. Wildhorse uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value). Prepare an amortization table for 20121 and 2022. Wildhorse Co. Lease Amortization Schedule Interest on Reduction in Receivable/Liability Receivable/Liability Annual Lease Receipt/Payment Lease Receivable/Liability $ 3793000 80500 $ 417230 $ 387770 3405230 80500 374575 430425 2974805 Prepare all of Wildhorse's journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Leased Equipment 3793000 Lease Liability 3793000 (To record the lease) Interest Expense Lease Liability cash (To record the first lease payment) Accumulated Depreciation Equipment Accumulated Depreciation-Equipment (To record depreciation)