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Attempt in Progress Sage Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2020. Annual rental payments of $43,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 7%; Sage's incremental borrowing rate is 9%. Sage is unaware of the rate being used by the lessor. At the end of the lease, Sage has the option to buy the equipment for $5,000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Sage uses the straight-line method of depreciation on similar owned equipment. Click here to view factor tables. Your answer is partially correct. Prepare the journal entries, that Sage should record on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places, e.g. 58,971.) Date Account Titles and Explanation Debit Credit December 31, 2020 Right-of-Use Asset Lease Liability (To record leased asset and related liability.) Lease Liability 43000 Cash 43000 (To record the first rental payment.)* Your answer is incorrect. Prepare the journal entries, that Sage should record on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2021 (To record amortization.) (To record annual payment on lease liability.) eTextbook and Media List of Accounts* Your answer is incorrect. Prepare the journal entries, that Sage should record on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, s account titles and enter 0 for the amounts. Round answers to O decimal places e.g. 58,971.) Date Account Titles and Explanation Debit Credit December 31, 2022 (To record annual amortization on leased assets.) (To record annual payment on lease liability.) eTextbook and Media List of AccountsX Your answer is incorrect. What amounts would appear on Sage's December 31, 2022, balance sheet relative to the lease arrangement? (Round answers to O decimal places, e.g. 58,971.) SAGE STEEL COMPANY Balance Sheet Assets Liabilities eTextbook and Media