aj.3 Assume that on December 31, 2024, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storagebuilding from Oriole Storage Company. The following information pertains to this lease agreement.1.2.3.4.5.The agreement requires equal rental payments of $66,499 beginning on December 31, 2024.The fair value of the building on December 31, 2024, is $486,311.The building has an estimated economic life of 12 years, a guaranteed residual value of $9,500, and an expected residualvalue of $7,100. Kimberly-Clark depreciates similar buildings on the straight-line method.The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor.Kimberly-Clark's incremental borrowing rate is 8% per year. The lessor's implicit rate is not known by Kimberly-Clark. Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments andexpenses related to this lease for the years 2024, 2025, and 2026. Kimberly-Clark's fiscal year-end is December 31. (List all debitentries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places e.g. 5,275.)DateAccount Titles and Explanation(To record the lease)(To record first lease payment)(To record amortization of the right-of-use asset)(To record interest expense)(To record amortization of the right-of-use asset)(To record interest expense)DebitCredit

A lease is defined as a contractual agreement incorporated between two business entities where one…

Assume that on December 31, 2024, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Oriole Storage Company. The following information pertains to this lease agreement. 1. 2. 3. 4. 5. The agreement requires equal rental payments of $66,499 beginning on December 31, 2024. The fair value of the building on December 31, 2024, is $486,311. The building has an estimated economic life of 12 years, a guaranteed residual value of $9,500, and an expected residual value of $7,100. Kimberly-Clark depreciates similar buildings on the straight-line method. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. Kimberly-Clark's incremental borrowing rate is 8% per year. The lessor's implicit rate is not known by Kimberly-Clark.