E$21\mathrm{.}15(L{O}_2)($Amortization Schedule and Journal Entries for Lessee$)$ Laura Leasing SA signs an agreement on January $1,2022,$ to lease equipment to Plote AG$.$ The following information relates to this agreement.

The term of the non$-$cancelable lease is $3$ years with no renewal option. The equipment has an estimated economic life of $5$ years.

The fair value of the asset at January $1,2022,$ is $80,000.$

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 $7,000,$ none of which is guaranteed.

The agreement requires equal annual rental payments of $25,562\mathrm{.}96$ to the lessor, beginning on January $1,2022.$

The lessee's incremental borrowing rate is $5\%.$ The lessor's implicit rate is $4\%$ and is unknown to the lessee.

Plote uses the straight$-$line depreciation method for all equipment.

Instructions

$($Round all numbers to the nearest cent.$)$

a$.$ Prepare an amortization schedule that would be suitable for the lessee for the lease term.

b$.$ Prepare all of the journal entries for the lessee for $2022$ and $2023$ to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December $31,$ and the lessee prepares reversing entries.