The lease agreement and related facts indicate the following:
a. Leased equipment had a retail cash selling price of $300,000. Its useful life was five years with no residual value.
b. The lease term was five years and the lessor paid $265,000 to acquire the equipment (thus, selling profit).
c. Lessor’s implicit rate when calculating annual lease payments was 8%.
d. Annual lease payments beginning January 1, 2024, the beginning of the lease, were $69,571.
e. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $7,500.

Required:
Prepare the appropriate entries for the lessor to record:
1. The lease and the initial payment at its commencement.
2. Any entry(s) necessary on December 31, 2024, the fiscal year-end.