Geiberger AG manufactures drones. On December 31, 2018, it leased to Althaus SA a drone that had cost €120,000 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires five equal annual rentals of €40,800 payable each December 31, beginning December 31, 2018. An interest rate of 8% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Geiberger's December 31, 2018, journal entries.