On January 1, 2018, Apple Enterprises leased equipment from Orange Enterprises. The equipment was purchased by Orange Enterprises at a cost of $347,655.

Other information:
Lease term	5 years
Annual payments	$82,000 on January 1 each year
Life of asset	5 years
Fair value of asset	$347,655
Implicit interest rate	9%
Incremental rate	9%

There is no expected residual value. Required: Prepare appropriate journal entries for Apple for 2018. Assume straight-line depreciation and a December 31 year-end. (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 amounts.)