Tyson, Inc. leases a piece of equipment from Holmes. The lease is for 5 years at an annual payment of $50,000. Tysons borrowing rate for the transaction of a similar length is 5.25%. The equipment has a 5-year economic life. The lease has no option to review and no guarantee of any residual value. The present value of the lease payments equals the fair value of the leased assets.

Please show all of the J/Es for the initial year to record the lease and related expenses and liability?

At the end of year 2 what is the account balance of the Right to Use Asset and the Lease Liability?