Virginia Power Co... leased equipment from Tech Leasing on January 1, 2016. $12,000 expected residual value at the end of the lease guaranteed by Virginia Power Co. . Required: a. Prepare all the appropriate journal entries for Virginia Power for 2016 and 2017. Assume double declining balance of depreciation and a December 31 year-end. b. Prepare the relevant portions of the balance sheet and of the income statement of Virginia Power with regard to the above, for the year 2016