Larkspur Company leased equipment from Costner Company, beginning on December $31,2024.$ The lease term is $4$ years and requires equal rental payments of $$67,611$ at the beginning of each year of the lease, starting on the commencement date $($December $31,2024).$ The equipment has a fair value at the commencement date of the lease of $$230,000,$ an estimated useful life of $4$ years, and no estimated residual value. The appropriate interest rate is $12\%.$

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Prepare Larkspur's $2024$ and $2025$ journal entries, assuming Larkspur depreciates similar equipment it owns on a straight$-$line basis. $($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $0$ decimal places, e$.$g$.5,275.$ Record journal entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit

$\frac{12}{31}\frac{?}{24}$

$($To record lease liability$)$

$($To record lease payment$)$