Exercise 15-35 (Algo) Lessor's initial direct costs; sales-type lease (LO15-3, 15-7) The lease agreement and related facts indicate the following: a. Leased equipment had a retail cash selling price of $410,000. Its useful life was four years with no residual value. b. The lease term was four years and the lessor paid $320,000 to acquire the equipment (thus, selling profit). c. Lessor's implicit rate when calculating annual lease payments was 9%. d. Annual lease payments beginning January 1, 2021, the beginning of the lease, were $116,105. e. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $8,600. Required: 1. & 2. Prepare the appropriate entries for the lessor to record the lease and the initial payment at its commencement and any entry(s) necessary at December 31, 2021, the fiscal year-end. (Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet X No Date General Journal Debit Credit January 01, 20 ease receivable Cost of goods sold Sales revenue Equipment 2 January 01, 2021 Selling expense Cash January 01, 2021 Cash Lease receivable 4 December 31, 2021 Interest receivable Interest revenue