Leases On january 1. Spider, Inc. entered into two lease contracts. The first lease contract was an eight year lease for a computer with $15,000 annual lease payments due at the end of each year. Spider took possession of the computer on january 1. The second lease contract was a six month lease, beginning january 1 for warehouse storage space with $1.500 monthly lease payments due the first of each month. Spider made the first month's payment on January 1. The present value of the lease payments under the first contract is $93,096. The present value of the lease payments under the second contract is $8,178 a. The first lease contract is a capital lease. Prepare the journal entry for this lease on January 1 b. The second lease contract is an operating lease. Prepare the journal entry for this lease on january1. General Journal Description Debit Credit Date a) Jan.1 To record 6-year capital lease