"Blossom Corporation entered into a lease agreement on January $1,2025,$ to provide Cullumber Company with a piece of machinery. The terms of the lease agreement were as follows.

$1.$ The lease is to be for $3$ years with rental payments of $$15,322$ to be made at the beginning of each year.

$2.$ The machinery has a fair value of $$62,000,$ a book value of $$40,000,$ and an economic life of $8$ years.

$3.$ At the end of the lease term, both parties expect the machinery to have a residual value of $$20,000,$ none of which is guaranteed.

$4.$ The lease does not transfer ownership at the end of the lease term, does not have a bargain purchase option, and the asset is not of a specialized nature.

$5.$ The implicit rate is $4\%,$ which is known by Cullumber.

$6.$ Collectibility of the payments is probable."

Prepare the $2025$ journal entries for Cullumber

Prepare the $2025$ Journal entries for Blossom

Suppose the lease were only for one year instead of $3$ years, with just one lease payment at the beginning of the lease term. Prepare any journal entries Cullumber would need, assuming it elects to use the short$-$term lease option.