Assume that on December 31, 2019, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Sheffield Storage Company. The following information pertains to this lease agreement.

1.		The agreement requires equal rental payments of $71,830 beginning on December 31, 2019.
2.		The fair value of the building on December 31, 2019 is $525,176
3.		The building has an estimated economic life of 12 years, a guaranteed residual value of $10,000, and an expected residual value of $7,000. Kimberly-Clark depreciates similar buildings on the straight-line method.
4.		The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor.
5.		Kimberly-Clarks incremental borrowing rate is 8% per year. The lessors implicit rate is not known by Kimberly-Clark.

Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expense related to this lease for the years 2019, 2020, and 2021. Kimberly clarks fiscal year end is December 31.