Leases The city of Morehead leased equipment. The life of the noncancellable lease is 10 years. Using an 8 percent interest rate, the present value of the lease payments is $951,154.05. The first payment of $131,250 is due when the lease begins, January 10, 2020. An additional payment of $131,250 is due on January 10th for each of the next 9 years. Prepare journal entries to record: 1. The long-term lease in the General Fund. 2. The first lease payment on January 10, 2020. 3. The second lease payment on January 10, 2021. Note: Round your answers to the nearest dollar. 1. Account Debit 0 Credit 0x To record a long-term lease. 2. 0 0 % 0 0 x To record initial lease payment. 3. 0 0 x 0 0 % 0 0 x To record 2021 payment on lease