BE21.4 (LO2) Waterworld Company leased equipment from Costner Company, beginning on December 31, 2018. The lease term is 4 years and requires equal rental payments of $41,933 at the beginning of each year of the lease, starting on the commencement date (December 31, 2018). The equipment has a fair value at the commencement date of the lease of $150,000, an estimated useful life of 4 years, and no estimated residual value. The appropriate interest rate is 8%. Prepare Waterworld's 2018 and 2019 journal entries, assuming Waterworld depreciates similar equipment it owns on a straight-line basis