Dominion Transport Corporation Signs an Agreement on January 2,2017 to Lease

Dominion Transport Corporation signs an agreement on January 2,2017 to lease trucks for a five-year period.The current market value of the trucks on January 2,2017,is $425,000.The lease agreement calls for annual payments of $95,117.The first payment is made on January 2,2017,all other payments are made on December 31 of each year.The lease agreement calls for a 7% interest rate.The estimated remaining life of the delivery equipment is seven years with a residual value of $10,000.Ownership of the delivery equipment will transfer to Warren Corporation at the end of the lease term.
a_Prepare the journal entry on January 2,2017,to record the lease agreement and make the first lease payment.
b_Prepare the entry on December 31,2017,to record the second lease payment and the accrual of interest.
c_Prepare the entry on December 31,2017,to record the amortization expense.
d_Prepare a December 31,2017 partial balance sheet to show how the lease arrangement will be presented in the asset and liability sections.