lessor: sale type lease - balance sheet confusion?

[cfafsa]

when a lessor enters a sales type lease, a net-investment is recorded on the balance sheet as an asset and is capitalized as time passes.
my question is - when a entry for an asset is recorded at the inception on the balance sheet, what is the corresponding entry added to the liabilities/equity? or where is the amount added. since the equation has to be balanced:
A = L + E,
assuming a single asset that the lessor enters in the sales type lease: every year it has to reduce the position i.e.
in yr1
NetInvestment (Asset) = A
in yr2
NetInvestment (Asset) = A - currentportion
the “currentportion”: is it recorded in equity on RHS??
this may be related to accounting but can anyone explain this ?

 

[alpenchev]

Dt Lease Receivable (Gross Investment in Leased Equipment) 120
Dt COGS 70
Ct Sales (Net Investment in Leased Equipment) 90
Ct Equipment 70
Ct Unearned Interest 30
Difference between Sales and COGS is the dealer’s profit
Lease payments reduce Receivable and recognize revenue:
Cr Lease Receivable 20
Dt Cash 20
Dt Unearned Interest 5 (30/120=0.25*20=5)
Ct Interest Revenue 5

 

[cfafsa]

thanks alpenchev