Assume that IBM leased equipment that was carried at the cost of $19500$ to cullumber company. the term of the lease is $6$ years beginning december $312024$ with equal rental payments of $30200$ beginning december $312024$ the fair value of the equipment at commencement of the lease is $150780$ the equipment has a useful life of $6$ years with no salvage value the lease has an implicit interest rate of $8\%$ no bargain purcahse option and no transfer of title collectibility of lease payments for IBM'S ProbableAssume that IBM leased equipment that was carried at a cost of $$195,000$ to Cullumber Company. The term of the lease is $6$ years

beginning December $31,2024,$ with equal rental payments of $$30,200$ beginning December $31,2024.$ The fair value of the equipment

at commencement of the lease is $$150,780.$ 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 $0$ for the amounts. For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round

final answers to $0$ decimal places e$.$g$.5,275.)$

Click here to view factor tables.

Date

December

$31,2024$

Account Titles and Explanation

Debit

Credit

Cash

$($To record the lease$)$

December

$31,2024$

$($To record receipt of lease payment$)$