Flounder Corporation leased equipment to Shamrock, Inc. on January 1, 2025. The lease agreement called for annual rental payments of $1,021 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $8,100, a book value of $6,100, and Flounder expects a residual value of $5,600 at the end of the lease term. Flounder set the lease payments with the intent of earning a 3% return, though Shamrock is unaware of the rate implicit in the lease and has an incremental borrowing rate of 5%. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Prepare all necessary journal entries for Shamrock in 2025. Shamrock uses straight-line depreciation. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date 1/1/25 1/1/25 Account Titles and Explanation Right-of-Use Asset Lease Liability (To record the lease) Lease Liability Cash (To record lease payment) 12/31/25 Lease Expense Lease Liability Right-of-Use Asset Debit Credit