Waterway, Inc. owns equipment that cost $105,000 and has a useful life of 10 years with no salvage value. On January 1, 2017, Waterway leases the equipment to Morgan Corporation for one year with one rental payment of $19,500 on January 1. Prepare Waterways 2017 journal entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
January 1	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	(To record receipt of lease payment)
December 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	(To record the recognition of the revenue each period)
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	(To record depreciation expenses on the leased asset)