Gordon Company, as lessee, enters into a lease agreement on July1, 2004 for equipment. The following data are relevant to the lease agreement 1. The term of the noncancelable lease is 4 years, with no renewable option. Payments of $253,613 are due on June 30 of each year 2. The fair, value of the equipment on July 1, 2004 is $840,000. The equipment has an economic life of 6 years with no residual value 3. Gordon depreciates the equipment using the straight line method. 4, Gordon's incremental borrowing rate is 10% per year. The lessee is aware that the lessor used an implicit rate of 8% in computing the lease payments 5. Present value factor of 4 periods at 8% is 3.31213 Present value factor of 4 periods at 10% is 3.16988 Required: A) Prepare the journal entries on Gordon's books that relate to the lease for the following dates 1) July 1, 2004 2) pecember 31, 2004 B) Calculate gross lease receivable that would appear on the lessor's books