A machine is leased under a finance lease. The following details are relevant: Lease period 4 years starting 1 January 2017

Lease payment $64,000 per year, payable in advance on the first day of each year (including $4000 payment to the lessor for the insurance and maintenance of the machine)

Implicit interest rate 6%

Life of machine 4 years

Residual value : Nil

Accounting year end: 31 December

Required:

(a) Prepare all of the lessee's journal entries for 2017