Brief Exercise 111 Hughey Co. as lessee records a capital lease of machinery on January 1, 2014. The seven annual lease payments of $702,400 are made at the end of each year. The present value of the lease payments at 10% is $3,407,700. Hughey uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value). Prepare an amortization table for 2014 and 2015. (Round answers to 0 decimal places e.g. 5,275.) Hughey Co. Lease Amortization Schedule Date Annual Lease Receipt/Payment Interest on Receivable/Liability Reduction in Receivable/Liability Lease Receivable/Liability 1/1/14 $ 12/31/14 $ $ $ 12/31/15 SHOW LIST OF ACCOUNTS Prepare all of Hughey's journal entries for 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.) Account Titles and Explanation Debit Credit (To record the lease.) (To record the first lease payment.) (To record depreciation.)