Indiana Jones Corporation enters into a 7-year lease of equipment on January 1, 2014, which requires 7 annual payments of $44,660 each, beginning January 1, 2014. In addition, Indiana Jones guarantees the lessor a residual value of $20,010 at lease-end. The equipment has a useful life of 7 years.

Prepare Indiana Jones January 1, 2014, journal entries assuming an interest rate of 10%. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

Date	Account Titles & Explanation	Debit	Credit
Jan 1, 2014
Jan 1, 2014