QS 10-18C Recording capital leases LO C3 Algoma, Inc., signs a five-year lease for office equipment with Office Solutions. The present value of the lease payments is $10.720. Prepare the journal entry that Algoma records at the inception of this capital lease. View transaction list Journal entry worksheet Record the capital lease of office equipment of $10,720. Note: Enter debits before credits. General Journal Debit Transaction Credit O EL