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Blue Design signed a lease for a conveyor belt on January 5, 2017, and the lease started on that date. As per the lease, Blue

Blue Design signed a lease for a conveyor belt on January 5, 2017, and the lease started on that date. As per the lease, Blue Design is required to make four annual lease payments of $4500, and the first payment is due on December 31, 2017. Blue Design had the option to finance the conveyor belt by borrowing at an interest rate of 11%. What entries should Blue Design record on January 5 and December 31, 2017 if the lease were to be a finance lease?

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