1 The lessee makes a lease payment of $86,400 to the lessor for equipment in an operating lease transaction Pharoah Company leases equipment from Noble Construction, Inc. The present value of the lease payments is $756,000 The lease qualifies as a capital lease. 2 Prepare the journal entries that the lessee should make to record the above transactions. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts) Qu Acce Que No. Account Titles and Explanation Debit Credit Accou 1 Quel Accour To record rent payment 2 View Accoun Quest To record lease asset and liability)