<u>Solution and Explanation:</u>
Date  General Journal                                 Debit  Credit  
January 1, 2017  Cash/Liquidity Finance Co.  680000    
  Computer system                                             600000  
  Profit on sale of computer system              80000  
 To record the sale of computer systems          
January 1, 2017  Lease Rental                       115970    
  Cash                                                              115970  
 To record the first lease rental of the lease                  Journal entries in the books of lesser(Liquidity Finance Co.)    
                                                                Amount in $  
Date  General Journal                                          Debit  Credit  
January 1, 2017  Computer system          	680000    
  Cash/Elmer's Restaurants                            680000  
 To record the purchase of computer systems        
January 1, 2017  Cash                               115970    
  Lease Rental Income                                             115970  
 To record the first receipt towards lease rental of the lease      
December 31, 2017  Depreication on computer system 68000    
  Accumulated depreication on computer system           68000  
 To record the depreication expense for the year