On January 1 Harbor (lessee) signs a five-year lease for equipment that is accounted for as a finance lease. The lease requires five $27.000 lease payments (the first at the beginning of the lease and the remaining four at December 31 of years 1, 2, 3 and 4), and the present value of the five annual lease payments is $114.472. based on a 9% interest rate 1. Prepare the January journal entry Harbor records at inception of the lease for any asset or liability 2. Prepare the January 1 entry Harbor records for the first $27000 cash lease payment 3. If the leased asset has a five-year useful life with no salvage value prepare the December 31 journal entry Harbor records each year for amortization of the leased asset Answer is complete but not entirely correct. No Date General Journal 1 Credit January 01 Equipment Losselby Debit 114.472 114 472 2 January 01 Los ability 27.000 Cash 27,000 3 December 31 Depreciation expense - Equipment Accumulated depreciation Equipment 22.894 22804