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 Ofor the amounts. Round answers to $0$ decimal places e$8.5,275.)$

e Account Titles and Explanation

Debit

Credit

Righe$-$of$-$Use Asset

$($To record the lease$)$

$($To record first lease payment$)$

Amortization Expense

$\backslash$table$[[37500$Assume that on December $31,2024.$ BE Aerospace signs a B$-$year, non$-$cancelable lease agreement to lease a hanger from Aero Field Manegement Company. The following information pertains to this lease agreement.

The agreement requires equal rental payments of $$162,347$ beginning on December $31,2024.$

The fair value of the building on December $31,2024$ is $$1,100,000.$

The building has an estimated economic life of $10$ years, a guaranteed residual value of $$50,000,$ and an expected residual value of $$35,000.$ BE depreciates similar buildings on the straight$-$line method.

The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor.

BEs incremental borrowing rate is $6\%$ per year. The lessor's implicit rate is not known by $BE.$

Click here to view factor tables. $($For calculation purposes, use $5$ decimal places as dispiayed in the factor table provided.$)$

$($a$)$

Your answer is partially correct.

Prepare the joumal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years $2024,2025,$ and $2026.$ BE's fiscal year$-$end is December $31($List oll debit entries before creditentries Credit occount titles are outomatically indented when amount is entered. Do not indent manually if no entry is required. select $"$No Entry" for the account titles and enter O for the amounts. Raund answers to $0$ decimal places es$.5\mathrm{.}275.)$

Date Account Titles and Explanation

Debit

Credit

$3124vv$

Rilght$-$af$-$use neset

$($To record the lease$)$

$($To record first lease payment$)$

$($To record amortization of the right$-$of$-$use asset$)$