On January 1, 2018, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a three-year period ending December 31, 2021, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $433,521 and has an expected economic life of four years. Aqua expects the residual value at December 31, 2018, to be $69,000. Negotiations led to Maywood guaranteeing a $98,500 residual value. Equal payments under the lease are $138,000 and are due on December 31 of each year with the first payment being made on December 31, 2018. Maywood is aware that Aqua used a 7% interest rate when calculating lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. & 2. Prepare the appropriate entries for Maywood on January 1, 2018 and December 31, 2018, related to the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit January 01, 2018 Right-of-use asset Lease payable 1 December 31, 2018 Amortization expense 2 Right-of-use asset December 31, Interest expense 3 2018 Lease payable Cash