Zagnut Industries finds itself with a need for a new packaging machine for its candy products. They prefer to lease the asset. The company finds that the market value for the equipment is $211,600. They find that the economic life of the asset is 10 years with no expected salvage value. Since the equipment is specialized and requires installation, the lessor insists that the ownership of the equipment be transferred to Zagnut at the end ofthe lease term. The lease term is for 8years. Zagnut agrees to monthly payments of$3,100, beginning at the end of the first month. Zagnut's interest rate is currently 9%. Zagnut acquires the equipment on June 30. Show the journal entries required on June 30, July 31, and December 31for the equipment. Zagnut's fiscal year end is December 31. Zagnut uses the mid-year convention and only records depreciation at fiscal year end.