Current Attempt in Progress

Blossom Steel Compary, as lessee, signed a lease agreement for equipment for $5$ years, beginning December $31,2025.$ Anrual rental

payments of $$41,000$ are to be made at the beginning of each lease year $($December $31).$ The interest rate used by the lessor in setting

the payment schedule is $4\%$; Blassom's incremental borrowing rate is $6\%.$ Plossom is unaware of the rate being used by the lessor. At

the end of the lease, Blossom has the option to buy the equipment for $$5,000,$ considerably below its estimated fair value at that time.

The equipment has an estimated useful life of $7$ years, with no salvage value. Blossom uses the straight$-$line methad of depreciation on

similar conned equipment.

Clsck here to view factor tables.

Your answer is partially correct.

Prepare the journal entries, that Blassom should record on December $31,2025.($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 tities and enter $0$ far the

amounts. Round present value factor calkulatians to $5$ decimal places, eg$.1\mathrm{.}25124$ and the final onswers to $0$ decimal places, e$.58,971.$

List all debit entries before credit entries$)$

$($To record the first rental payment.$)$

eTextbook and Media

List of Accounts

Your answer is partially correct.

Prepare the journal entries, that Blassom should record on December $31,2026.($Credit account tities are automatically indented

when amount is entered. Do not indent manually. If no entry is required, seiect $"$No Entry" for the account titles and enter $0$ for the

amounts. List all debit entries before credit entries.$)$

$($To record annual payment on lease llability.$)$

eTextbook and Media

List of Accounts

Your answer is partially correct

Prepare the journal entries, that Blossom should record on December $31,2027.($Credit accoumt 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 $0$ far the

amounts. Round answers to $0$ decimal places es$.58,971.$ List all debit entries before credit entries$)$

$($To record annual payment on lease llability.$)$