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Help me correct the two incorrect answers outlined in red for this intermediate accounting 2...

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Accounting

Help me correct the two incorrect answers outlined in red for this intermediate accounting 2 question in the screenshot?Skysong Company leased equipment from Costner Company, beginning on December 31,2019. The lease term is 4 years and requires
equal rental payments of $68,064 at the beginning of each year of the lease, starting on the commencement date (December 31,
. The equipment has a fair value at the commencement date of the lease of $250,000, an estimated useful life of 4 years, and no
estimated residual value. The appropriate interest rate is 6%.
Click here to view factor tables.
Prepare Skysong's 2019 and 2020 journal entries, assuming Skysong depreciates similar equipment it owns on a straight-line basis.
(Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal
places as displayed in the factor table provided and round final answers to 0 decimal places, e.g.5,275.)
Credit
Right-of-Use Asset
Lease Liability
(To record lease liability)
1]
1
image

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