Carla Vista Corporation manufactures drones. On December $31,2024,$ it leased to Sunland Company a drone that had cost

$$111,000$ to manufacture. The lease agreement covers the $5-$year useful life of the drone and requires $5$ equal annual rentals of

$$41,300$ payable each December $31,$ beginning December $31,2024.$ An interest rate of $10\%$ is implicit in the lease agreement.

Collectibility of the rentals is probable.

Prepare Carla Vista's December $31,2024,$ journal entries. $($List all debit entries before credit entries. Credit account titles are automatically

indented when 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. For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $0$ decimal places

e$.$g$.5,275.)$

Click here to view factor tables.

Date

December $31,$

$2024$

Account Titles and Explanation

Lease Receivable

Cost of Goods Sold

Sales Revenue

Inventory

$($To record the lease$)$

$($To record the lease$)$

December $31,$

$2024$

Debit

Credit

Credit