Buzz Lightyear Corporation manufactures replicators. On January 1, 2015, it leased to BoPeep Company a replicator that had cost £110,000 to manufacture. The lease agreement covers the 5-year useful life of the replicator and requires 5 equal annual rentals of £40,800 payable each January 1, beginning January 1, 2015. An interest rate of 12% is implicit in the lease agreement. Prepare Lightyear’s January 1, 2015, journal entries.