Lessor CBA Inc, leased a machine to lessee DF Co. The Lease is non-cancelable and requires DF to pay $6,000 per year, payable in advance, over a four-year period. CBAs implicit interest rate (known to DF) is 6%. The lease term begins on January 1, 2020. The machines economic life is 7 years. The machines book value is $26,000 and fair value $30,000, with a guaranteed residual value of $10,000. The collectability of the lease payments is probable for the lessor. (Note: Present Value of an annuity of 1 for 4 periods at 6% is 3.46511, Present Value of an annuity due of 1 for 4 periods at 6% is 3.67301. Present Value of 1 of 4 periods at 6% is 0.79209) 1. Provide the journal entries required on the lessees books through January 1, 2020

2. Provide The journal entries required on the Lessor books through January 1,2020