On January 1, 2018, Brown Sofa International leased equipment from Smith Enterprises.

Other information:
Lease term	4 years
Annual payments	$47,000 on January 1 each year
Life of asset	4 years
Implicit interest rate	8%
PV, annuity due, 4 periods, 8%	3.5771
PV, ordinary annuity, 4 periods, 8%	3.3121

There is no expected residual value. Required: Prepare appropriate journal entries for Brown Sofa International for 2018 and 2019. Assume straight-line amortization and a December 31 year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.)