Accоunting fоr Operаting аnd Finаnce Leases (FSET) On January 1, Weber, Inc., entered intо two lease contracts. The first lease contract was a six-year lease for computer equipment with $20,000 annual lease payments due at the end of each year. Weber took possession of the equipment on January 1. The second lease contract was a six-month lease, beginning January 1, for warehouse storage space with $1,500 monthly lease payments due the first of each month. Weber made the first month’s payment on January 1. The present value of the lease payments under the first contract is $99,359. The present value of the lease payments under the second contract is $8,895. a. Assume that the first lease contract is a finance lease. Prepare a financial statement effects template to show the effects of the entry on January 1. b. Assume the second lease contract is an operating lease. Prepare a financial statement effects template to show the effects of the entry on January 1. Note: The company is not applying the short-term lease election. ● Note: Use negative signs with your answers, when appropriate. ● Note: Select "N/A" as your answer if a part of the accounting equation is not affected. ● Note: Round answers to the nearest whole dollar. a. Finance Lease: Balance Sheet Income Statement Cash Noncash Contra Contributed Earned Contra Net Transaction Asset + Assets - Assets = Liabilities + Capital + Capital - Equity Revenue - Expenses = Income 1/1 Finance lease commences. {#1} {#2} {#3} {#4} {#5} {#6} b. Operating Lease: Balance Sheet Income Statement Cash Noncash Contra Contributed Earned Contra Net Transaction Asset + Assets - Assets = Liabilities + Capital + Capital - Equity Revenue - Expenses = Income 1/1 Operating lease commences. {#7} {#8} {#9} {#10} {#11} {#12} 1/1 Lease payment. {#13} {#14} {#15} {#16} {#17} {#18} {#19} {#20} {#21} {#22} {#23} {#24}