Eubank Company, a lessee, enters into a lease agreement on January $1,2021,$ for equipment. The following data are relevant to the lease agreement:

The term of the noncancelable lease is $4$ years. Payments of $$978,446$ are due on January $1$ of each year. The first payment is January $2021.$

The fair value of the equipment on January $1,2021$ is $$3,500,000.$ The equipment has an economic life of $6$ years with no salvage value.

Eubank uses the straight$-$line method of depreciation.

Eubank's implicit rate is $8\%.$

This will be treated as a finance lease $($Lessee Perspective$).$

Instructions: Prepare the journal entries on Eubank's books $($lessee$)$ that relate to the lease agreement for the following dates, you do not need to create an amortization schedule.

a$.$ January $1,2021.$

b$.$ December $31,2021.$