Renth Corporation Entered into the Following Transactions

Essay

Renth Corporation entered into the following transactions:
1. On January 1 2017 Lee Car Rental leased a car to Renth Corporation for one year. Terms of the operating lease call for monthly payments of $650.
2. On January 1 2017 Renth Corporation entered into an agreement to lease 20 machines from Sweis Corporation. The terms of the lease agreement require an initial payment of $500000 and then three annual rental payments of $600000 beginning on December 31 2017. The present value of the three rental payments is $1492108. The lease is a capital lease.
Instructions
Prepare the appropriate journal entries to be made by Renth Corporation in January related to the lease transactions.