Blue Corporation leases equipment from Falls Company on January 1, 2017. The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers 3 years of the equipments 8-year useful life, and the present value of the lease payments is less than 90% of the fair value of the asset leased. Prepare Blues journal entries on January 1, 2017, and December 31, 2017. Assume the annual lease payment is $49,000 at the beginning of each year, and Blues incremental borrowing rate is 4%, which is the same as the lessors implicit rate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,265.)