Accоunting fоr Leаses On July 1, Shrоff Compаny leаsed a warehouse building under a 10-year lease agreement. The lease requires quarterly lease payments of $5,000. The first lease payment is due on September 30, 2020. The lease was reported as a finance lease using an 8% annual interest rate. Prepare the journal entries for parts a and b, and (2) post to the appropriate T-accounts. a. To record the commencement of the lease on July 1. b. To record what would be necessary on September 30 and December 31. 1. a. Date Account Debit Credit Jul. 1 {#1} {#2} b. Date Account Debit Credit Sep. 30 {#3} {#4} Sep. 30 {#5} {#6} {#7} Dec. 31 {#8} {#9} Dec. 31 {#10} {#11} {#12} 2. Cash {#13} {#14} {#15} {#16} Right-of-use Asset–Finance Lease {#17} {#18} {#19} Accumulated Amortiz.–Finance Lease {#20} {#21} {#22} {#23} Finance Lease Liability {#24} {#25} {#26} {#27} {#28} Interest Expense {#29} {#30} {#31} {#32} Amortiz. Expense–Finance Lease {#33} {#34} {#35} {#36}