Cullumber Company, as lessee, enters into a lease agreement on July $1,2021,$ for equipment. The following data are relevant to the lease agreement:$1.$ The term of the noncancelable lease is $4$ years, with no renewal option. Payments of $$855,212$ are due on July $1$ of each year.The fair value of the eguipment on July $1,2021$ is $$3,020,000.$ The equipment has an economic life of $6$ years with no salvage$2.$value$\mathrm{.}3.$ Cullumber depreciates similar machinery it owns on the sum$-$of$-$the$-$years'$-$digits basis$\mathrm{.}4.$ The lessee pays all executory costs$\mathrm{.}5.$ Cullumber's incremental borrowing rate is $10\%$ per year. The lessee is aware that the lessor used an implicit rate of $9\%$ in computing the lease payments. Cullumber Company has entered inti a finance lease.

Prepare the journal entries on Cullumber's books that relate to the lease agreement for the following dates: $($Credit account titles are automatically indented when amount is entered. Do not indent manually. Round present value factor calculations to $5$ decimal places, e$.$g$.125124$ and the final answer to $0$ decimal places e$.$g$.5,250.)$

July $1,2021.$

December $31,2021.$

July $1,2022$

December $31,2022.$

Date

luty $1,2021$

Jacember $31,2021$

luly $1,202$

December $31,2022$