On december 31, 2016, larkspur corporation signed a 5-year, non-cancelable lease for a machine. the terms of the lease called for larkspur to make annual payments of $9,318 at the beginning of each year, starting december 31, 2016. the machine has an estimated useful life of 6 years and a $5,500 unguaranteed residual value. the machine reverts back to the lessor at the end of the lease term. larkspur uses the straight-line method of depreciation for all of its plant assets. larkspur incremental borrowing rate is 6%, and the lessor’s implicit rate is unknown.
the present value of the lease payment is $41,606.prepare all necessary journal entries for larkspur for this lease through december 31, 2017. (record journal entries in the order presented in the problem. credit account titles are automatically indented when amount is entered. do not indent manually. round answers to 0 decimal places e. g. 5,275.)right of use asset 41,606lease liability 41,606(to record the lease).lease liability 9,318cash 9,318(to record first lease 8, 8,321(to record the amortization of the right-of-use asset)lease liability 9,318i need all of the question marks ! i've tried everything in my book and nothing works and i don't understand.