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On January $1,$ Weber, Inc., entered into 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:

b$.$ Operating Lease:

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