On January $1,2024,$ Taco King leased retail space from Fogelman Properties. The $10-$year finance lease requires quarterly variable

lease payments equal to $3\%$ of Taco King's sales revenue, with a quarterly sales minimum of $$500,000.$ Payments at the beginning of

each quarter are based on previous quarter sales. During the previous five$-$year period, Taco King has generated quarterly sales of

over $$700,000.$ Fogelman's interest rate, known by Taco King, was $4\%.$

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 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 $$710,000.$ Amortization is recorded quarterly.