On January $2,2014,$ the Clapton Studios leased six computers for use in the engineering department.

The lease period is for $13$ years and the estimated economic life of the leased property is $15$ years. The lease

does not contain automatic title transfer or a bargain purchase option. Lease payments are $$11,000$ per year,

payable each December $31.$ The incremental borrowing rate for Clapton is $12$ percent and the implicit interest

rate $($known by Clapton$)$ is $10$ percent. The company uses straight$-$line depreciation for this type of equipment.

Provide the necessary journal entries to record the transactions for Clapton for the period January $2,2014$

through December $31,2015.$

Please show work for the calculation of percentage and show journal entries for both years $2014$ and $2015.$