Nickle leased equipment to Back Company on July $1,2024.$ Lease payments of $$18,000$ are due each year beginning July $1,2024.$ The present value of the lease payments discounted at $10\%$ was $$120,000.$ The asset's useful life is $12$ years.

Required:

$1.$ Prepare the journal entries to record the lease by Nickle $($lessor$)$ on July $1,2024,$ and on December $31,2024,$ the end of its fiscal year. Assume that Nickle acquired this equipment for $$120,000$ on July $1,2024$ for the purpose of this lease and that control of the equipment was transferred to the lessee at the beginning of the lease.

$2.$ Prepare the journal entries to record the lease by Nickle $($lessor$)$ on July $1,2024,$ and on December $31,2024,$ the end of its fiscal year. Assume that Nickle acquired this equipment for $$180,000$ on July $1,2024$ for the purpose of this lease and that that control of the equipment was not transferred to the lessee.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.