Deal Leasing leased equipment to Hand Company on January $1,2024.$ The lease payments were calculated to provide the lessor a $9\%$ return. Eight annual lease payments of $$61,000$ are due at the beginning of each year beginning January $1,2024.$ The present value of an annuity due of $$1$ at $9\%$ for eight periods is $6\mathrm{.}03295.$

Required:

Consider this to be a finance lease.

Prepare the journal entries to record the lease by Hand $($lessee$)$ on January $1,2024.$

Prepare the journal entries to record the lease by Hand $($lessee$)$ on December $31,2024,$ the end of the first reporting period.

$*4$ SEPERATE JOURNAL ENTRIES NOT $2*$