Fresco Ltd enters into a non-cancellable lease agreement with Meola Ltd to lease some equipment under the following conditions: Duration 20 years 25 years $9,000 $2,000 at inception $8,500 per year (20 payments) Life of leased asset Unguaranteed residual Lease payment Lease payments (in arrears) The interest rate implicit in the lease is 9% and the fair value of the asset at the inception of the lease is $81 199. What are the journal entries to record the lease payment at inception of the lease and the next two lease payments in the books of the lessee (rounded to the nearest dollar)? To record payment at lease inception: Lease liability Cash Dr 2000 Cr 2000 To record the next two lease payments: Interest expense Lease liability Cash Dr 6983 Dr 1517 Cr 8500 Interest expense Lease liability Dr 6847 Dr 1653 Cr Cash 8500