On January $1,2024,$ Taco King leased retall space from Fogelman Propertles. The $10-$year finance lease requires quarterly varlable lease payments equal to $3\%$ of Taco King's sales revenue, with a quarterly sales minimum of $$520,000.$ Payments at the beginning of each quarter are based on previous quarter sales. During the previous five$-$year perlod, Taco King has generated quarterly sales of over $$710,000.$ Fogelman's interest rate, known by Taco King, was $4\%.$

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

Required:

Prepare the journal entries for Taco King at the beginning of the lease on January $1,2024.$

Prepare the Journal entries for Taco King on April $1,2024.$ First quarter sales were $$720,000.$ Amortization is recorded quarterly.

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

Required $I$

Prepare the journal entries for Taco King at the beginning of the lease on January $1,2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required $"$ in the first account field. Round your answers to the nearest whole dollar amount.

Journal entry worksheet

$12$

Record the beginning of the lease for Taco King.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $01,2024,,,],[,,,],[,,,]]$