i Brief Exercise 21A-6 Your answer is partially correct. Try again. Waterworld Company leased equipment from Costner Company, beginning on December 31, 2016. The lease term is 4 years and moutes equsl no the being ot ach yxk d'ow commencement date (December 31, 2016). The equipment has a fair value at the commencement date of the lease of $150,001, an estinated unsefut ihe of 4 vears, and no estinated t n Prepare Waterworld's 2016 and 2017 journal entries, assuming Waterworld manually. For calculation purposes, use 5 declnal places as dselawed in tbd depreciates similar equlpment it owns on a straight-ne basis, (Credit account aoalyte aout is mt ut rtable provided and round inat answers to 0 decimaf places ea s273) Date Account Titles and Explanation Debit Credit 12/31/16 Leased Equipment 50001 Lease Uiability 150001 (To record lease liability) 12/31/16 Lease Liability Cash (To record lease payment) 2/31/17 Tinterest Expense Depreciation Expense Cash 41934 (To record lease payment) 2/31/17 Interest Expense 8645 Depreciation Expense 33289 Interest Expense 41934 (To record interest expense) xc 12/31/17 Accumulated Depreciation-Capital Leases 37500 Accumulated Depreciation-Capital Leases 37500 (To record amortization of the right-of-use asset) SHOW LIST OF ACCOUNTS