Marin Company leased equipment from Costner Company, beginning on December 31, 2016. The lease term is 8 years and requires equal rental payments of $ 51,560 at the beginning of each year of the lease, starting on the commencement date (December 31, 2016). The equipment has a fair value at the commencement date of the lease of $ 320,000, an estimated useful life of 8 years, and no estimated residual value. The appropriate interest rate is 8%. Click here to view the factor table. Prepare Marins 2016 and 2017 journal entries, assuming Marin depreciates similar equipment it owns on a straight-line basis. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
12/31/16	enter an account title To record lease liability on December 31 2016	enter a debit amount	enter a credit amount
	enter an account title To record lease liability on December 31 2016	enter a debit amount	enter a credit amount
	(To record lease liability)
12/31/16	enter an account title To record lease payment on December 31 2016	enter a debit amount	enter a credit amount
	enter an account title To record lease payment on December 31 2016	enter a debit amount	enter a credit amount
	(To record lease payment)
12/31/17	enter an account title To record interest expense on December 31 2017	enter a debit amount	enter a credit amount
	enter an account title To record interest expense on December 31 2017	enter a debit amount	enter a credit amount
	enter an account title To record interest expense on December 31 2017	enter a debit amount	enter a credit amount
	(To record interest expense)
12/31/17	enter an account title To record amortization of the right-of-use asset on December 31 2017	enter a debit amount	enter a credit amount
	enter an account title To record amortization of the right-of-use asset on December 31 2017	enter a debit amount	enter a credit amount
	(To record amortization of the right-of-use asset)