I don't know what account is the debit entry for 12/31/17 and the amounts:

Brief Exercise 21A-16 Your answer is partially correct. Try again. Kingston Corporation leases equipment from Falls Company on January 1, 2017. The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers 3 years of the equipment's 8-year useful life, and the present value of the lease payments is less than 90% of the fair value of the asset leased. Prepare Kingston's journal entries on January 1, 2017, and December 31, 2017. Assume the annual lease payment is $35,000 at the beginning of each year, and Kingston's incremental borrowing rate is 6%, which is the same as the lessor's implicit rate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,265.) Click here to view the factor table Date Account Titles and Explanation Debit Credit 1/1/17 Right-of-Use Asset 99169 Lease Liability 99169 (To record lease liability) 1/1/17 Lease Liability 35000 Cash 35000 To record lease payment) 12/31/17 |Amortization Expense 0 Lease Liability Right-of-Use Asset