Cullumber 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 $37,000 at the beginning of each year, and Cullumber's incremental borrowing rate is 5%, 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 O for the amounts. Record journal entries in the order presented in the problem.)