Leased Assets

Koffman and Sons signed a four-year lease for a forklift on January 1, 2017. Annual lease payments of $1,307, based on an interest rate of 10%, are to be made every December 31, beginning with December 31, 2017.

Just need help with the red x's

b. Identify and analyze the effect of the first lease payment on December 31, 2017. Activity Operating and Financing Accounts Cash Decrease, Lease Obligation Decrease, Interest Expense Increase Statement(s) Balance Sheet and Income Statement Feedback Check My Work How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Round answers to the nearest whole dollar. Balance Sheet Income Statement Stockholders Net Assets Liabilities Equity Revenues Expenses Income Cash 13071 x Lease Obligation 893 X -414 No Entry 0 Interest Expense 414 -414 Feedback Check My Work Partially correct