On July 1, 2014, Stokes Company leased a warehouse building under a 20-year lease agreement. The lease requires quarterly lease payments of $5,500. The first lease payment is due on September 30, 2014. The lease was reported as a capital lease using a 4% annual interest rate.

a. Prepare the journal entry to record the initial signing of the lease on July 1, 2014. (Use a financial calculator or Excel to compute. Round answer to the nearest whole number.)

b. Prepare the journal entries that would be necessary on September 30 and December 31, 2014. (Use rounded answer from above for subsequent calculations. Round your answers to the nearest dollar.)

c. Post the entries from parts a and b in their appropriate T-accounts.

d. Prepare a financial statement effects template to show the effects of the entries from parts a and b on the balance sheet and income statement.

e. Redo parts a and b assuming that the lease is reported as an operating lease. (If no entry is required, enter "No entry" for the debit and credit account name.)