Assume that IBM leased equipment that was carried at a cost of $178,000 to Sandhill Company. The term of the lease is 6 years beginning December 31, 2024, with equal rental payments of $30,300 beginning December 31, 2024. The fair value of the equipment at commencement of the lease is $151,279. The equipment has a useful life of 6 years with no salvage value. The lease has an implicit interest rate of 8%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Prepare IBM's December 31, 2024, journal entries at commencement of the lease. (List all debit entries before credit entries. Credit account titles are automatically Indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) Click here to view factor tables. Date December 31, 2024 Account Titles and Explanation Cash Debit Credit

Assume that IBM leased equipment that was carried at a cost of $178,000 to Sandhill Company. The term of the lease is 6 years beginning December 31,2024 , with equal rental payments of $30,300 beginning December 31,2024 . The fair value of the equiprnent at commencement of the lease is $151,279. The equipment has a useful life of 6 years with no salvage value. The lease has an implicit interest rate of 8%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for iBM is probable. Prepare IBM's December 31, 2024, joumal entries at commencement of the lease. (List all debit entries before credit entrles, Credit occount tities are outomotically indented when amount is entered. Do not indent manually. If no entry Is required, select "No Entry' for the occount tities and enter Ofor the amounts. For calculation purposes, use 5 decimal places as disployed in the foctor table provided and round final answers to O decimal places es. 5,275.) Click here to view factor tables