Oakridge Leasing Corporation signs an agreement on January $1,2023,$ to lease equipment to Wildhorse Limited. Oakridge and Wildhorse follow ASPE. The following information relates to the agreement:$1.$The term of the non$-$cancellable lease is five years, with no renewal option. The equipment has an estimated economic life of six years$\mathrm{.}2.$ The asset's fair value at January $1,2023,$ is $$81,000\mathrm{.}3.$The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $$6,700,$ which is guaranteed$\mathrm{.}4.$Wildhorse assumes direct responsibility for all executory costs, which include the following annual amounts: $$940$ to Rocky Mountain Insurance Ltd$.$ for insurance and $$1,660$ to James Township for property taxes$\mathrm{.}5.$ The agreement requires equal annual rental payments of $$19,121$ to Oakridge, the lessor, beginning on January $1,2023\mathrm{.}6.$ The lessee's incremental borrowing rate is $13\%.$ The lessor's implicit rate is $12\%$ and is known to the lessee$\mathrm{.}7.$ Wildhorse uses the straight$-$line depreciation method for all equipment$\mathrm{.}8.$ Wildhorse uses reversing entries when appropriate.Click here to view the factor table PRESENT VALUE OF $1.$Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.

Prepare all of Wildhorse's Journal entries for $2023$ to record the lease agreement and the lease payments. Wildhorse's accounting period ends on December $31.$ Ignore payments of insurance and property taxes.