LeBron James (LB)) Corporation agrees on January 1, 2025, to lease equipment from Pharoah, Inc, for 3 years. The lease calls for annual lease payments of $21,000 at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment. Prepare LB)'s journal entries on January 1, 2025 (commencement of the operating lease), and on December 31, 2025. Assume the implicit rate used by the lessor is unknown, and LBJ's incremental borrowing rate is 5%. (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 occount titles and enter Ofor the amounts. List all debit entries before credit entries. For calculation purposes, use 5 decimal ploces as displayed in the factor table provided and round final answers to O decimal ploces, es 5,275. Record journal entries in the order presented in the problem.) Lease Liability (To record lease payment) eTextbook and Media