On January $1,2024,$ Nguyen Electronics leased equipment from Nevels Leasing for a four$-$year period ending December $31,2027,$

which time possession of the leased asset will revert back to Nevels.

The equipment cost Nevels $$844,309$ and has an expected economic life of five years.

Nevels expects the residual value on December $31,2027,$ will be $$108,000.$

Negotiations led to the lessee guaranteeing a $$156,000$ residual value.

Equal payments under the lease are $$208,000$ and are due on December $31$ of each year with the first payment being made

December $31,2024.$

Nguyen is aware that Nevels used a $6\%$ interest rate when calculating lease payments.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Prepare the appropriate entries for both Nguyen and Nevels on January $1,2024,$ to record the lease.

Prepare all appropriate entries for both Nguyen and Nevels on December $31,2024,$ related to the lease.

Complete this question by entering your answers in the tabs below.

Prepare all appropriate entries for both Nguyen and Nevels on December $31,2024,$ related to the lease.

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

and final answers to the nearest whole dollar.

Journal entry worksheet