Prepare journal entries for the following:

1. CGWO has a lease incentive liability associated with its current landlord paying their lease termination fee associated with an old lease. The landlord will charge CGWO the full amount of the outstanding lease liability if CGWO breaks their current lease. The liability is amortized over the life of the current lease. In the current period the liability account is amortized in the amount of $65,000 and the offsetting account is rent expense.

2. CGWO pays down its note payable by $791,250, and interest expense of $121,500.