please I need help on this. can you help me get the results by doing the journal entries.

its so much easier for me. I will really appreciate your help.

Dr rou

cr lease payable

1st pmt Dr lease payable

cr cash

12/31/2001 accrual.

Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discounted at 6% was $58,500. Ten annual lease payments of $7,500 are due each year beginning July 1,2021 . Smith Co. had constructed the equipment recently for $53,500, and its retail fair value was $58,500. The total decrease in earnings (pretax) in Karla's December 31, 2021, income statement would be (ignore taxes)