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North Star Leasing Company (lessor) leases industrial sized generators to companies. North Star entered into...

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North Star Leasing Company (lessor) leases industrial sized generators to companies. North Star entered into a five-year lease agreement with Ball Corp. (lessee) on January 1, 2019. Annual lease payments were $100,000 with the first payment due on December 31, 2019 and every December 31st thereafter. The interest rate for these lease agreements is 6%. The generator cost is $450,000 and its useful life is five years. Prepare the journal entries for North Star Leasing at inception. [12 points] Prepare the journal entries for North Star Leasing on December 31, 2019. [8 points]

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