The FASB Codification added an entirely new section (842) to describe how to record leases. In this section, the FASB gave us some illustrations to show us how to apply the new rules. One example gives the illustration of a Lessee Recognition and Subsequent measurement of an operating lease (looking for illustration example 4). This example has six paragraphs or steps described. This illustration describes the amounts that should be shown on the balance sheet -

What journal entries are needed to record the first two years of the operating lease as described in the codification?