To raise operating funds, Signal Aviation sold an airplane on January 1, 2013, to a finance company for $950,000. Signal immediately leased the plane back for a 12-year period, at which time ownership of the airplane will transfer to Signal. The airplane has a fair value of $980,000. Its cost and its book value were $710,000. Its useful life is estimated to be 14 years. The lease requires Signal to make payments of $126,750 to the finance company each January 1. Signal depreciates assets on a straight-line basis. The lease has an implicit rate of 10%. Required: 1. Prepare the appropriate entries for Signal on January 1, 2013, to record the sale-leaseback. Prepare Journal enteries Record Cash payment Record The Lease Record The Cash Payment Record the interest expense. Record the depreciation expense. Record any necessary adjustments to depreciation