Blossom Corporation manufactures replicators. On January 1, 2017, it leased to Althaus Company a replicator that had cost $105,300to manufacture. The lease agreement covers the5-year useful life of the replicator and requires5equal annual rentals of $43,200payable each January 1, beginning January 1, 2017. An interest rate of12% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs.

Blossom's January 1, 2017, journal entries?