Prepare the journal entries that the lessee should make to record the following transactions. (Credit account titles are automatically indented when amount is indent manually.) 1. The lessee makes a lease payment of $87,970 to the lessor in an operating lease transaction. 2. Imhoff Company leases a new building from Noble Construction, Inc. The present value of the lease payments is $742,000. The lease qualifies as a capital lease. No. Account Titles and Explanation Credit Debit 1. 2