Larkspur Inc. was incorporated in $2019$ to operate as a financial service firm, with an accounting fiscal year ending April $30.$

Larkspur's primary product is a sophisticated online investment management system; its customers pay a fixed fee plus a usage

charge for using the system.

Larkspur has leased a large, GenX computer system from the manufacturer. The lease calls for a monthly rental of $$24,500$ for the

$144$ months $(12$ years$)$ of the lease term. The estimated useful life of the computer is $14$ years.

All rentals are payable on the first day of the month beginning with April $1,2020,$ the date the computer was installed and the lease

agreement was signed. The lease is non$-$cancelable for its $12-$year term, and it is secured only by the manufacturer's chattel lien on

the GenXsystem.

This lease is to be accounted for as a finance lease by Larkspur, and the asset will be amortized by the straight$-$line method.

Borrowed funds for this type of transaction would cost Larkspur $6\%$ per year $(0\mathrm{.}5\%$ per month$).$ Following is a schedule of the

present value of an annuity due for selected periods discounted at $0\mathrm{.}5\%$ per period when payments are made at the beginning of

each period.

Prepare all entries Larkspur should make in its accounting records during April $2020$ relating to this lease. Remember, April $30.$

$2020,$ is the end of Larkspur's fiscal accounting period, and it will be preparing financial statements on that date. Do not prepare

closing entries. $($Credit account titles are automatically indented when 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. Round answers to $0$ decimal places, eg$.125.$ Record journal entries in the

order presented in the problem.$)$

Account Titles and Explanation

$($To record the lease.$)$

L

$($To record lease payment.$)$

$[$

$($To record interest.$)$

$[$

$($To record amortization.$)$

Debit

Credit

Credit