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On January 1, 2019, Wesson Corporation signed a 5-year noncancelable lease for an office building....

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On January 1, 2019, Wesson Corporation signed a 5-year noncancelable lease for an office building. The lease requires 10 annual payments of $60,000. This lease qualifies as a capital lease. Prepare the journal entry to record this lease, assuming an interest rate of 8%. The present value of the minimum lease payments is $402,605. Date Description Debit Credit Dec Prepare the journal entry for the first lease payment on December 31, 2019. Date Description Debit Credit Prepare the journal entry for the second lease payment on December 31, 2020. Description Debit Date Credit

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