Exerclse $15-33($Algo$)$ Nonlease payments; lessor and lessee $[$LO$15-2,15-7]$

On January $1,2024,$ NRC Credit Corporation leased equipment to Brand Services under a finance$/$salestype lease designed to earn NRC a $11\%$ rate of return for providing long$-$term financing. The lease agreement specified the following:

Ten annual payments of $$58,000$ beginning January $1,2024,$ the beginning of the lease and each December $31$ thereafter through $2032.$

The estimated useful life of the leased equipment is $10$ years with no residual value. Its cost to NRC was $$336,658.$

The lease qualifies as a finance lease$/$sales$-$type lease.

A $10-$year service agreement with Quality Maintenance Company was negotiated to provide maintenance of the equipment as required. Payments of $$6,500$ per year are specified, beginning January $1,2024.$ NRC was to pay this cost as incurred, but lease payments reflect this expenditure.

A partial amortization schedule, appropriate for both the lessee and lessor, follows:

Note: Use tables, Excel, or a financlal calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

$\backslash$table$[[,$Effective Interest $(11\%$Decrease in Outstanding$],[,$Payments x Outstanding balance$),$Balance,Balance,$],[\frac{1}{1}\frac{?}{2024},51,500,,,336,658],[\frac{12}{31}\frac{?}{2024},51,500,0\mathrm{.}11(285,158)=31,367,20,133,265,158],[\frac{12}{31}\frac{?}{2025},51,500,0\mathrm{.}11(265,025)=29,153,22,347,242,678]]$

Required:

Prepare the appropriate entrles for the lessee related to the lease on January $1,2024$ and December $31,2024.$

Prepare the approprlate entrles for the lessor related to the lease on January $1,2024$ and December $31,2024.$

Complete this question by entering your answers in the tabs below.

Prepare the appropriate entries for the lessor related to the lease on January $1,2024$ and December $31,2024.$

Notes 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.

Journal entry worksheet