Barmble Corporation manufactures specialty construction equipment at a cost of $152,000 each. The equipment has an estimated economic life of 8 years. Bramble uses the straight-line method of depreciation and the companys year-end is December 31.

Bringham Corporation signs a 5-year lease starting January 1, 2019 with annual payments of $30,000 due January 1 of each year. The lease has an unguaranteed residual value of $23,000 and the lessors implied interest rate is 10%.

Prepare the journal entries on the books of Bramble Corporation on January 1, 2019 and on December 31, 2019 assuming the company follows ASPE.