Delray Leasing Company signs an agreement on January $1,2025,$ to lease equipment to Wildhorse Company. The following information relates to this agreement. Assume that the expected residual value at the end of the lease is $$26,400,$ such that the payments are $$23,737,52.$

The term of the non$-$cancelable lease is $4$ years with no renewal option. The equipment has an estimated economic life of $6$ years.

The fair value of the asset at January $1,2025,$ is $$110,100.$

The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $$26,400,$ none of which is guaranteed.

The agreement requires equal annual rental payments of $$23,737\mathrm{.}52$ to the lessor, beginning on January $1,2025.$

The lessee's incremental borrowing rate is $6\%.$ The lessor's implicit rate is $5\%$ and is unknown to the lessee.

Wildhorse uses the straight$-$line depreciation method for all equipment.

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Prepare all of the journal entries for the lessee for $2025$ to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December $31.($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round answers to $2$ decimal places, e$.$g$.5,265\mathrm{.}25.$ List all debit entries before credit entries. 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 titles and enter $0$ for the amounts. Record journal entries in the order presented in the problem.$)$