Patsy Co. and Philip Inc. sign a lease agreement dated January 1, 2020. The lease agreement specifies that Patsy (lessor) will grant right-of-use to Philip (lessee) of one of its machines that is not of a specialized nature. The lease term is non-cancelable and has a 3- year term. On January 1, 2020, the machine has a cost and fair value of $240,000, an estimated economic life of five years, and a residual value at the end of the lease of $48,000 (unguaranteed). The machine reverts to Patsy at the end of the lease term and the lease contains no renewal options. Patsy used a 6 percent rate when calculating the lease payments, and Philip is aware of this rate. Philip's incremental rate is 8%. The payments are to be made at the beginning of the year with the first payment on January 1, 2020. Use the following PV factors: PV annuity due, 3 periods, 6% 2.83339 PV annuity due, 3 periods, 8% 2.78326 PV ordinary annuity, 3 periods, 6% 2.67301 PV ordinary annuity, 3 periods, 8% 2.57110 PV single sum, 3 periods, 6% 83962 PV single sum, 3 period 8% .79383 On January 1, 2021, which of the following journal entries will Philip make? Lease Liability Lease Receivable Lease Liability Interest Expense Amortization Expense Cash Lease Expense Right-Of-Use Asset Lease Liability O Lease Liability Cash 70,480.32 62,727.24 7,753.08 7,753.08 62,727.24 70,480.32 70,480.32 62,727.24 7,753.08 70,480.32 70,480.32