On January $1,2024,$ Blue Co$.$ enters into a contract to lease manufacturing equipment from Green Co$.$ for $5$ years.

Below is pertinent information of the lease contract:

Lease term $5$ years

Annual rental payable at the beginning of each year $$60,000$

Useful life of the machine $100$ years

Implicit interest rate in lease $($known by Blue Co$.)10\%$

Present value of an annuity of $$1$ for $5$ periods at $10\%3\mathrm{.}7908$

Present value of an annuity of $$1$ for $4$ periods at $10\%3\mathrm{.}1699$

A commission of $$10,000$ was paid at the beginning of the lease term. There is no bargain purchase option or title transfers to Blue Co$.$ at the end of the lease. The cost of the machine on Green$$s accounting records is $$10,000,000.$ The equipment is commonly used by manufacturers other than Blue Co$.$

Assume Blue Co$.$ determines that the lease is an operating lease. Prepare the appropriate entry on January $1,2024,$ December $31,2024,$ January $1,2025,$ and December $31,2025$ for Blue Co per ASC $842.($Round your answers to the nearest integer. Please select the answer that is closest to the correct answer.$)$

January $1,2021$

Account Amount

Dr$.$

$[$ Select $]$

$[$ Select $]$

Cr$.$

$[$ Select $]$

$[$ Select $]$

Cr$.$ Cash $60,000$

December $31,2021$

Account Amount

Dr$.$

$[$ Select $]$

$[$ Select $]$

Cr$.$

$[$ Select $]$

$[$ Select $]$

Cr$.$

$[$ Select $]$

Intended to be missing

January $1,2022$

Account Amount

Dr$.$

$[$ Select $]$

$60,000$

Cr$.$ Cash $60,000$

December $31,2022$

Account Amount

Dr$.$

$[$ Select $]$

$[$ Select $]$

Cr$.$

$[$ Select $]$

$[$ Select $]$

Cr$.$

$[$ Select $]$

Intended to be missing