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32. Hoof & Tail Ltd enters into a non-cancellable lease agreement with Equine Industries to lease some equipment under the following conditions Duration of the lease Life of leased asset Unguaranteed residual Lease payment Lease payments (in arrears) 9 years 11 years $6,000 $7,000 lat lease inception $5,000 per year (9 payments) The interest rate implicit in the lease is 11% and the fair value of the asset at the inception of the lease is $37 031. What are the joumal entries to record the lease, the payment at lease inception and the first lease payment in the books of the lessee (rounded to the nearest dollar)? To record the lease and pay at lease inception A. Dr Leased asset Cr Lease liabilit 37 031 37 031 Dr Lease liabilit Cr Cash To record the first lease Or Lease Cr Cash 5000 5000 o record the lease and payr at lease inception: Dr Leased asset Cr Lease liabilt 34 685 34 685 Dr Lease liabilit Cr Cash 7000 To record the first lease payr Dr Interest expense Dr Lease liabilit Cr Cash 3045 1955 5000