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 O decimal places, e.g. 5,275. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Interest and depreciation expense calculations are based on the nearest full month.) Lessee: ate Account Titles and Explanation ),2023 v Equipment under Lease Obligations under Lease Debit Credit 266147 ' ' 231147 ' Cash ' 35000 (To record lease payment) [,2023 V' ' Interest Expense Obligations under Lease (To record interest) [,2023 V' ' Depreciation Expense Accumulated Depreciation - Leased Equipment (To record depreciation expense) Lessor: ate Account Titles and Explanation ),2023 v ' ' Lease Receivable ),2023 v Inventory ' Unearned Interest Income (To record inception of lease) Debit Credit 266147 ' Cash ' 35000 ' Lease Receivable ' ' 35000 (To record collection of lease payment) [,2023 ' ' Unearned Interest Income ' Interest Income (To record interest) eTextbook and Media Assistance Used