Kingbird Company leases an automobile with a fair value of $20,299 from Jason Motors, Inc., on the following terms. 1. Non-cancelable term of 50 months. Rental of $430 per month (at the beginning of each month). (The present value at 0.5% per month is $19.076.) Kingbird guarantees a residual value of $1,030 (the present value at 0.5% per month is $803). Kingbird expects the probable residual value to be $1,030 at the end of the lease term. Estimated economic life of the automobile is 60 months Kingbird's incremental borrowing rate is 6% a year (0.50% a month). Jason's implicit rate is unknown. 2. 3. 4. 5. Record the second month's lease payment. (List all debit entries before credit entries. 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 answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit