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Problems P21.1 (L02, 4) (Lessee Entries) The following facts pertain to a non-cancelable lease agreement between Faldo Leasing and Vance plc, a lessee. FCommencement date January 1, 2019 ggpgal lease payment due at the beginning of each year, beginning with January 1, 113,864 'Residual value of equipment at end of lease term, guaranteed by the lessee 50,000 Expected residual value of equipment at end of lease term 45,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, 2019 600,000 Lessor's implicit rate 8% Lessee's incremental borrowing rate 8% The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Instructions 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 2019 and 2020 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