On January 1, Lorraine, Inc., entered into a lease contract. The lease contract was a ten-year lease for a computer with \(\$ 15,000\) annual lease payments due at the end of each year. Lorraine took possession of the computer on January 1 . The present value of the lease payments under the lease contract is \(\$ 108,703\).

The lease contract is a finance lease. Prepare the journal entry for this lease on January 1.