Blossom Company leases a building to Wildhorse, Inc. on January $1,2025.$ The following facts pertain to the lease agreement. The lease term is $5$ years, with equal annual rental payments ofat the beginning of each year. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. The building has a fair value of$,$ a book value to Blossom of$,$ and a useful life of $6$ years. At the end of the lease term, Blossom and Wildhorse expect there to be an unguaranteed residual value of$.$ Blossom wants to earn a return ofon the lease, and collectibility of the payments is probable. This rate is known by Wildhorse.

Prepare all of the journal entries for the lessor for $2025$ and $2026$ to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor's annual accounting period ends on December $31,$ and it does not use reversing entries. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

late

Account Titles and Explanation

Lease Receivable

Cost of Goods Sold

$($To record the lease$)$

$\mathrm{.}5$

$5$ v

$[$