Accounting for Operating and Capital Leases On January 1, 2014, Springer, Inc., entered into two lease contracts. The first lease contract was a 6-year lease for computer equipment with $15,000 annual lease payments due at the end of each year. Springer took possession of the equipment on January 1, 2014. The second lease contract was a 6-month lease, beginning January 1, 2014, for warehouse storage space with $1,000 monthly lease payments due the first of each month. Springer made the first month's payment on January 1, 2014. The present value of the lease payments under the first contract is $74,520. The present value of the lease payments under the second contract is $5,853. Required a. Assume that the first lease contract is a capital lease. Prepare the appropriate journal entry for this lease on January 1, 2014. Date Description Debit Credit 1/1/2014 Answer Answer Answer Answer Answer Answer b. Assume the second lease contract is an operating lease. Prepare the proper journal entry for this lease on January 1, 2014. Date Description Debit Credit 1/1/2014 Answer Answer Answer Answer Answer Answer