Blossom Corporation leases equipment from Falls Company on January $1,2025.$ The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers $3$ years of the equipment's $8-$year useful life, and the present value of the lease payments is less than $90\%$ of the fair value of the asset leased. The annual lease payment is $$36,000$ at the beginning of each year, and Blossom's incremental borrowing rate is $7\%,$ which is the same as the lessor's implicit rate.

Prepare all the necessary journal entries for Falls Company $($the lessor$)$ for $2025,$ assuming the equipment is carried at a cost of $$232,000.($List all debit entries before credit entries. Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.$)$