Hughey Co. as lessee records a capital lease of machinery on January 1, 2020. The seven annual lease payments of $875,000 are made at the end of each year. The present value of the lease payments at 10% is $4,260,000. Hughey uses the effective-interest method of amortization and sum-of-the-years-digits depreciation (no residual value).

(a) Prepare an amortization table for 2020 and 2021.

(b) Prepare all of Hugheys journal entries for 2020.