Blue Design signed a lease for a conveyor belt on January 5, 2014, 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, 2014. 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, 2014 if the lease were to be a finance lease?