On January 1, 2017, Tejas Distributiors sold a warehouse to Jamble Leasing for $650,000 and immediately leased it back. The warehouse was carried on Tejas books at $311,000. The term of the lease is 5 years. The lease contains no renewal or purchase options. The warehouse reverts to Jamble at the termination of the lease. The lease requires 5 equal rental payments of 66,204 at the end of each year. The appropriate rate of interest is 8%, and the warehouse has a useful life of 20 years with no salvage value. Prepare Tejas 2017 journal entries. (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.)