For Lessee:

• Record the lease. Jan 1
• Record the entry for lease payment and maintenance expense. Jan 1
• Record the entry for lease payment and maintenance expense. Dec 31
• Record the Amortization expense. Dec 31

For Lessor:

• Record the lease Jan 1
• Record the entry for the receipt of the lease payment and maintenance expense. Jan 1
• Record the entry for the receipt of the lease payment and maintenance expense. Dec 31

On January 1, 2024, First Coast Leasing leased equipment to Beach Services under a finance/sales-type lease designed to earn First Coast a 12% rate of return for providing long-term financing. The lease agreement specified: a. Ten annual payments of $110,000 beginning January 1,2024 , the beginning of the lease and each December 31 thereafter through 2029. b. The estimated useful IIfe of the leased equipment is 10 years with no residual value. Its cost to First Coast was $632,824. c. The lease qualifies as a finance lease/sales-type lease. d. A 10-year service agreement with Mechanics International was negotiated to provide maintenance of the equipment as required. Payments of $10,000 per year are specified, beginning January 1, 2024. FIrst Coast was to pay this cost as incurred, but lease payments reflect this expenditure. e. A partial amortization schedule, approprlate 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) Required: 1. Prepare the approprlate journal entries for the lessee related to the lease on January 1,2024 and December 31, 2024. 2. Prepare the approprlate journal entries 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