Blossom Corporation $($Blossom$)$ manufactures equipment with an estimated economic life of $14$ years. On May $30,2023,$ Blossom

leases it to Gadget Corporation $($Gadget$)$ for a period of $10$ years. Details of the lease are as follows:

$,$ Equipment has a fair value and cost at the inception of the lease: $$266,147.$

Guaranteed residual value: $$27,000.$

Annual lease payment, due at beginning of each year: $$35,000.$

Lease contains no renewal options and the equipment reverts to Blossom at the end of the lease.

Gadget's incremental interest rate, as well as implicit rate is $8\%.$

Gadget uses straight$-$line depreciation for similar equipment that it owns.

Blossom has determined that collectibility of lease payments is reasonably predictable and that no additional costs will be

incurred.

Assume both companies follow ASPE. Prepare the journal entries for the lessee and lessor at May $30,2023,$ the inception of the lease, and at December $31,2023,$ which

is the year end for both the lessee and lessor. $($List all debit entries before credit entries. Credit account titles are automatically indented

when the amount is entered. Do not indent manually. Round answers to $0$ decimal places, e$.$g$.5,275.$ If no entry is required, select $"$No

entry" for the account titles and enter $0$ for the amounts. Interest and depreciation expense calculations are based on the nearest full

month.$)$

Lessee:

$($To record lease payment$)$

Interest Expense

$($To record interest$)$

Depreciation Expense

$($To record depreciation expense$)$ Lessor: