On January $1,2024,$ Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four$-$year period ending December $31,2027,$ at which time possession of the leased asset will revert back to Aqua.

The equipment cost Aqua $$431,275$ and has an expected economic life of five years.

Aqua and Maywood expect the residual value at December $31,2027,$ to be $$67,000.$

Negotiations led to Maywood guaranteeing a $$95,500$ residual value.

Equal payments under the lease are $$134,000$ and are due on December $31$ of each year with the first payment being made on December $31,2024.$

Maywood is aware that Aqua used a $5\%$ interest rate when calculating lease payments.

Question:

Please record the journal entry for the beginning of the lease for Maywood Hydraulics.