On December $31,2023,$ the City of Oliver leases a large piece of construction equipment with a $25-$year life for five years to use during a construction project. After the contract ends, the city must return the equipment to the lessor but has not guaranteed any residual value. The lease requires five annual payments of $$40,000$ per year beginning immediately. Oliver uses its own incremental borrowing rate of $10$ percent per year because it does not know the implicit interest rate the lessor is charging. The present value of a $$40,000$ annuity due for five years at an annual interest rate of $10$ percent is $$166,795.$

Prepare the journal entries required for fund financial statements for this lease contract for $2023$ and $2024.$

Note: Round your answers to the nearest whole number.