Problem 10. Lessor leases asset to Lessee on 1/1/2020. Lease term is 8 years. Lease payment is $97,580.60/year with the first payment due at the inception of the lease. The lease payment includes $10,000 payment for hazard insurance and taxes that the Lessor is paying on Lessee's behalf. Lessor's implicit rate is 12%/year and this rate is known by Lessee. Required 1. Record the lease in the Lessee's books on 1/1/2020. Enter your entries below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Entries by Lessee at inception of lease on 1/1/2020: Account Debit Credit 1 1 1 1 2. Redo #1 assuming that the $10,000 payment is for an annual service contract (on the leased asset) rather than hazard insurance and taxes. Enter your entries below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Account Debit Credit 2 2 2 2 2 Column1 Accumulated depreciation (Bal. Sht) Cash (Bal. Sht) Deferred rent revenue (Bal. Sht) Equipment (Elal. Sht) Lease payable (Bal. Sht) Lease receivable (Bal. Sht) Note payable (Bal. Sht) Prepaid service contract (Bal. Sht) Right-of-Use asset (Bal. Sht) Warehouse (Bal. Sht) Amortization expense (Inc. Stmt) Cost of goods sold (Inc. Stmt) Gain on sale pf warehouse (Inc. Stmt) Interest expense (Inc. Stmt) Interest revenue (Inc. Stmt) Lease expense (Inc. Stmt) Lease revenue (Inc. Stmt) Misc. expenses (Inc. Stmt) Rent revenue (Inc. Stmt) Sales revenue (Inc. Stmt)