Accounting for Operating and Finance Leases On January 1, 2020, Weber, Inc., entered into two lease contracts. The first lease contract was a six-year lease for computer equipment with $17,000 annual lease payments due at the end of each year. Weber took possession of the equipment on January 1, 2020. The second lease contract was a six-month lease, beginning January 1, 2020 for warehouse storage space with $1,800 monthly lease payments due the first of each month. Weber made the first month's payment on January 1, 2020. The present value of the lease payments under the first contract is $84,450. The present value of the lease payments under the second contract is $10,535. a. Assume that the first lease contract is a finance lease. Prepare the appropriate journal entry for this lease on January 1, 2020. Description Debit Credit 1/1/20 Right-of-use lease asset - finance lease OX Finance lease liability 0 Date b. Assume the second lease contract is an operating lease. Prepare the proper journal entry for this lease on January 1, 2020. Date Description Debit Credit 1/1/20 Right-of-use asset-operating lease OX Operating lease liability 0 0 x To record inception of lease 1/1/20 Operating lease liability 0 Cash 0 0 x To record lease payment