-eased assets The Police Department of Ramser Falls signed a noncancellable lease for computer equipment on January 1 , 2021. The lease was for 5 years. The present value of payments expected to be made during the lease is $26,498, and the city's incremental borrowing rate is 9 percent. The annual lease payments are $6,250 and are due on the first day of the year, beginning on January 1, 2021. Assuming the equipment is delivered when the lease is signed, prepare all journal entries necessary to record the lease transaction for 2021 and the payment made in 2022