Bayou Inc. leases equipment to its customers under non-cancelable leases. On January 1, 2019, Bayou (lessor) leased equipment costing $800,000 to Rockwell Co. (lessee) for nine years, with an estimated residual value of $160,000 at the end of the lease term. The rental cost was $88,000 payable in advance semiannually (January 1 and July 1 ), plus $4,000 semiannually for executory costs. Rockwell Co. plans to return the equipment to Bayou Inc. at the end of the lease term. The equipment had an estimated life of 15 years and has a fair market value of $1,066,050 at the time of the lease agreement. The implicit interest rate is 12 percent. Required: Prepare all journal entries on Jan 1, July 1, and Dec 31 for 2019 on Bayou's and Rockwell's books. Round all calculations to the nearest dollar. Use straight-line depreciation. (1) Bayou's Books (Lessor) (13 marks) (2) Rockwell's Books (Lessee) (12 marks)