Prepare the journal entries that the lessee should make to record the following transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

1.		The lessee makes a lease payment of $73,410 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 $695,100. The lease qualifies as a capital lease.

No.	Account Titles and Explanation	Debit	Credit
1.
2.