Superbyte Corporation sells photographic equipment. Superbyte leases equipment to Laguna Madre Company on January 1 of the current year. The cost to manufacture the equipment was $12,000,000. The lease agreement between SuperByte and Laguna Madre had the follow terms: 1. The lease is noncancellable. 2. The lease has no residual value or bargain purchase option. 3. The lease term is 8 years; payments are made semiannually. 4. Depreciation is recorded each December 31 using the straight-line approach. 5. The economic life of the equipment is 8 years. 6. The lessee's incremental borrowing rate and the implicit interest rate are both 12% annually. 7. The lease payments are $1,493,617 semiannually. The first payment is due at the inception of the lease; subsequent payments are made every July 1 and January 1. 8. The fair value of the equipment at the inception of the lease is $16,000,000. Refer to Superbyte Corporation. Record the journal entries that SuperByte will make at the inception of the lease and on July 1.