Cullumber enters into an agreement with Blossom Inc. to lease a car on December $31,2024.$ The following information relates to this agreement.

The term of the non$-$cancelable lease is $3$ years with no renewal or bargain purchase option. The remaining economic life of the car is $3$ years, and it is expected to have no residual value at the end of the lease term.

The fair value of the car was $$18,775$ at commencement of the lease.

Annual payments are required to be made on December $31$ at the end of each year of the lease, beginning December $31,2025.$ The first payment is to be of an amount of $$6,950\mathrm{.}26,$ with each payment increasing by a constant rate of $5\%$ from the previous payment $($i$.$e$.,$ the second payment will be $$7,297\mathrm{.}77$ and the third and final payment will be $$7,662\mathrm{.}66).$

Cullumber' incremental borrowing rate is $8\%.$ The rate implicit in the lease is unknown.

Cullumber uses straight$-$line depreciation for all similar cars.

$($a$)$ Prepare Cullumber' journal entries for $2024,2025,$ and $2026.($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 $0$ for the amounts. For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $2$ decimal places, e$.$g$.5,275\mathrm{.}25.$ Record journal entries in the order presented in the problem.$)$

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