Prepare the journal entries that the lessee should make to record the following transactions. 1. The lessee

Question:

Prepare the journal entries that the lessee should make to record the following transactions.
1. The lessee makes a lease payment of $80,000 to the lessor in an operating lease transaction.
2. Imhoff Company leases a new building from Noble Construction, Inc. The present value of the lease payments is $700,000. The lease qualifies as a capital lease.